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MS Multi Protect CHF Index

  • ISIN: CH1103220179

Der MS Multi Protect CHF Index kombiniert eine Investmentstrategie mit einer modernen Anlagekomponente zur periodischen Gewinnabsicherung. Die Investmentstrategie investiert in ein Kern- und in ein Kontrollportfolio. Das Kernportfolio ermöglicht die Partizipation an der Wertentwicklung des MSCI World Min Vol NTR USD Index und eröffnet dadurch Ertragschancen und eine hohe Diversifikation.

Dabei fliessen Nettodividendenerträge der Unternehmen durch Reinvestition in die Wertentwicklung mit ein.

Das Kontrollportfolio soll Stabilität beisteuern und setzt sich aus deutschen Bundesanleihen, amerikanischen Staatsanleihen und einer Geldmarktkomponente zusammen. Es wird durch eine tägliche Risikokontrolle gesteuert, die darauf abzielt, dass die Investmentstrategie eine Volatilität von 5 % nicht überschreitet. Zur Erreichung des Volatilitätsziels werden dem Kernportfolio im ersten Schritt Anleihen des Kontrollportfolios beigemischt und im zweiten Schritt wird auf den Geldmarkt ausgewichen.

Die Anlagekomponente zur periodischen Gewinnabsicherung sorgt dafür, dass der Index nie unter sein Absicherungsniveau (Gewinn-Lock-in) fallen kann. Bei Auflage des Index ist das Absicherungsniveau (Gewinn-Lock-in) als ein Prozentsatz des Index Levels zu Berechnungsbeginn, nämlich 90 % definiert und wird jedes Quartal aktualisiert. Wertsteigerungen in der Investmentstrategie werden jedes Quartal überwacht und bei Erreichen eines neuen Höchststands eingelockt, sodass das Absicherungsniveau (Gewinn-Lock-in) zu 90 % des höchsten Indexstandes nach oben mitzieht.

Um Transparenz, Liquidität und Kosteneffizienz zu ermöglichen, setzt der MS Multi Protect CHF Index bei der Umsetzung der Investmentstrategie auf Indizes und Terminkontrakte (Futures), denen die jeweilige Anlage zugrunde liegt. Die Gewichtung der Investmentstrategie wird unter Berücksichtigung des Volatilitätsziels von 5 % und basierend auf einem mathematischen Regelwerk täglich angepasst. Dabei kann die Gewichtung in Aktien in ruhigen, schwankungsarmen Marktphasen auf bis zu 150 % erhöht werden, um optimal am Aufwärtstrend globaler Märkte zu partizipieren. In gestressten Märkten kann das Gewicht in Anleihen auf bis zu 100 % angehoben werden. Sollte die Beimischung von Anleihen nicht ausreichen, um grösseren Marktbewegungen entgegenzuwirken, wird auf den Geldmarkt ausgewichen.

Der MS Multi Protect CHF Index wird als Excess Return Index und in Schweizer Franken berechnet, wobei das Währungsrisiko der nicht in Schweizer Franken denominierten Komponenten abgesichert wird.

L’indice MS Multi Protect CHF combine une stratégie d’investissement à forte croissance avec une composante de protection moderne qui offre une couverture périodique des bénéfices. La stratégie d’investissement consiste à investir dans un portefeuille de base et un portefeuille de stabilisation. Le portefeuille de base permet de participer à la performance de près de 300 entreprises à haut rendement dans 23 pays industrialisés, ce qui ouvre des possibilités de rendement intéressantes ainsi qu’un degré élevé de diversification.

Le revenu net des dividendes des entreprises est inclus dans la performance par réinvestissement.

Le portefeuille de stabilisation est destiné à réduire le risque de la stratégie et est composé de Bunds allemands, d’obligations d’État américaines et d’une composante de marché monétaire. Il est régulé par un contrôle quotidien du risque, qui vise à garantir que la stratégie d’investissement ne dépasse pas une volatilité de 5%. Pour atteindre l’objectif de volatilité,les obligations sont ajoutées à la stratégie dans un premier temps et le marché monétaire est utilisé dans un deuxième temps.

Enfin, la sécurisation des gains garantit que les rendements de la stratégie générés d’un trimestre à l’autre en atteignant de nouveaux sommets sont sécurisés à hauteur de 90% et ne peuvent plus être perdus. Afin d’assurer transparence, liquidité et rentabilité, l’indice MS Multi Protect CHF utilise des indices et des contrats à terme (futures) énumérés ci-dessous comme base de la stratégie d’investissement.

La pondération des investissements est ajustée quotidiennement, en tenant compte de l’objectif de volatilité de 5% et sur la base d’un ensemble de règles mathématiques. La pondération en actions peut être portée à 150% dans les phases calmes et peu volatiles du marché afin de participer de manière optimale à la tendance haussière des marchés mondiaux. En cas de tensions sur les marchés, la pondération des obligations peut être augmentée jusqu’à 100%. Si l’ajout d’obligations n’est pas suffisant pour contrecarrer les mouvements du marché brutaux, alors l’indice a recours à une exposition au marché monétaire.

L’indice MS Multi Protect CHF est calculé comme un indice de rendement excédentaire et en francs suisses, ce qui permet de couvrir le risque de change des éléments non libellés en francs suisses.

Indice MS Multi Protect CHF combina una strategia d'investimento ad alta crescita con una componente d'investimento moderna per la protezione periodica dei profitti. La strategia investe in un portafoglio principale e in un portafoglio di stabilizzazione. Il portafoglio principale permette di partecipare alla performance di quasi 300 società ad alto rendimento in 23 paesi industrializzati, offrendo così massime opportunità di guadagno e un alto grado di diversificazione.

I proventi netti dei dividendi delle società sono inclusi nello creazione di valore attraverso il reinvestimento.

Il portafoglio di stabilizzazione ha lo scopo di contribuire alla stabilità ed è composto da Bund tedeschi, titoli di stato americani e una componente del mercato monetario. È gestito attraverso un controllo quotidiano del rischio, mirato a garantire che la strategia d’investimento non superi una volatilità del 5%. Per raggiungere l'obiettivo di volatilità, nella prima fase le obbligazioni del portafoglio di stabilizzazione vengono aggiunte al portafoglio principale e il passaggio al mercato monetario ha luogo nella seconda fase.

Infine, la sicurezza dei profitti assicura che i rendimenti dell'indice generati da un trimestre all'altro raggiungendo nuovi massimi dell'indice siano protetti al 90% e non possano più andare persi.

Al fine di garantire trasparenza, liquidità ed efficienza dei costi, Indice MS Multi Protect CHF utilizza come base della strategia d’investimento l'indice e i contratti a termine (futures) elencati qui di seguito. La ponderazione della strategia d’investimento viene regolata quotidianamente, tenendo conto dell'obiettivo di volatilità del 5% e sulla base di una serie di regole matematiche. In fasi di mercato calme e a bassa volatilità, la ponderazione in azioni può essere aumentata fino al 150%, al fine di partecipare in modo ottimale alla tendenza al rialzo dei mercati globali. In situazioni di stress dei mercati, la ponderazione in obbligazioni può essere aumentata fino al 100%. Se l'aggiunta di obbligazioni non è sufficiente a contrastare le fluttuazioni dei mercati più ampie, si ricorre al mercato monetario.

Indice MS Multi Protect CHF è calcolato come un indice excess return in franchi svizzeri, per cui il rischio valutario dei componenti non denominati in franchi svizzeri è coperto.

Kursverlauf

Chart Disclaimer

Die historische Wertentwicklung (realisiert oder simuliert) ist kein Indikator für die zukünftige Wertentwicklung. Es wird keine Verantwortung übernommen, dass bestimmte Resultate oder Renditen erreicht werden können oder dass alle Annahmen, die beim Erreichen dieser Renditen getroffen wurden, genannt oder in Betracht gezogen wurden.
Les performances passées (réalisées ou simulées) ne sont pas un indicateur des performances futures: en aucun cas, les chiffres indiqués ne constituent un engagement de la part de Morgan Stanley quant aux rendements/résultats futurs.
La performance passata (effettiva o simulata) non è indicativa della performance futura. Il raggiungimento dei risultati/rendimenti indicati non è garantito, così come non si garantisce che siano stati presi in considerazione tutti i presupposti per ottenere tali rendimenti.
Past performance (actual or simulated) is not indicative of future performance. No representation is made that any results / returns indicated would be achieved or that all assumptions in achieving these returns have been considered or stated. The Index has been calculated since February 2012. Any data for the Morgan Stanley Multi-Asset CHF Index performance before such date is based on simulated historical performance. Index Levels are calculated daily.

MSCI Index Disclaimer

For the avoidance of doubt, MSCI is not the benchmark “administrator” for, or a “contributor”, “submitter” or “supervised contributor” to, any blended returns calculated by Morgan Stanley using end of day index level values licensed from MSCI (“MSCI Data”), and the MSCI Data is not considered a “contribution” or “submission” in relation to the blended returns, as those terms may be defined in any rules, laws, regulations, legislation or international standards

Referenzdaten

Name MS Multi Protect CHF Index
ISIN CH1103220179
Valoren 110322017
Bloomberg Ticker MSQTMPC5 Index
Basiswährung CHF
Sponsor Morgan Stanley & Co. International plc
Index Berechnungsstelle Morgan Stanley & Co. International plc
Typ Excess Return
Neugewichtung Täglich
Berechnungsbeginn 15.06.2021

KENNZAHLEN

Aktuelles Index Level 94.78 Pkt.
Aktuelles Absicherungsniveau (Gewinn-Lock-in) 90.00 Pkt.
Gewicht der Investmentstrategie 76.30 %
Gewicht der Anlagekomponente zur Gewinnabsicherung 23.70 %
Index Level zum Berechnungsbeginn 100.00 Pkt.
Absicherungsfrequenz Quartalsweise
Rendite seit diesem Jahr -5.41 %
Rendite seit Berechnungsbeginn (kumulativ) -5.22 %
Rendite seit Berechnungsbeginn (annualisiert) -4.12 %
Rendite seit Rückrechnung (kumulativ) -5.22 %
Letzte Aktualisierung 23.09.2022

GEWICHTUNG DER ANLAGEN IN DER INVESTMENTSTRATEGIE

Renditebeisteuerungen der Anlagen im Index

      Chart Disclaimer

      Die historische Wertentwicklung (realisiert oder simuliert) ist kein Indikator für die zukünftige Wertentwicklung. Es wird keine Verantwortung übernommen, dass bestimmte Resultate oder Renditen erreicht werden können oder dass alle Annahmen, die beim Erreichen dieser Renditen getroffen wurden, genannt oder in Betracht gezogen wurden.
      Les performances passées (réalisées ou simulées) ne sont pas un indicateur des performances futures: en aucun cas, les chiffres indiqués ne constituent un engagement de la part de Morgan Stanley quant aux rendements/résultats futurs.
      La performance passata (effettiva o simulata) non è indicativa della performance futura. Il raggiungimento dei risultati/rendimenti indicati non è garantito, così come non si garantisce che siano stati presi in considerazione tutti i presupposti per ottenere tali rendimenti.
      Past performance (actual or simulated) is not indicative of future performance. No representation is made that any results / returns indicated would be achieved or that all assumptions in achieving these returns have been considered or stated. The Index has been calculated since February 2012. Any data for the Morgan Stanley Multi-Asset CHF Index performance before such date is based on simulated historical performance. Index Levels are calculated daily.

      Risikofaktoren

      Risikofaktoren und Anlageüberlegungen

      Bevor sie eine Anlageentscheidung in Bezug auf ein Finanzprodukt treffen, sollten potenzielle Anleger alle in dieser Beschreibung, einschliesslich dieses Abschnitts (Risikofaktoren und Anlageüberlegungen), enthaltenen Informationen sorgfältig prüfen. Dieser Abschnitt (Risikofaktoren und Anlageüberlegungen) beschreibt verschiedene Risikofaktoren, die nach Ansicht des Indexsponsors die Hauptrisiken darstellen, die mit Wertpapieremissionen, Derivatetransaktionen oder sonstigen Finanzprodukten verbunden sind, deren Rendite an den Index gekoppelt ist oder anderweitig durch Bezugnahme auf den Index bestimmt wird (jede derartige Emission, Transaktion oder jedes derartige Produkt ein "Finanzprodukt"). Jeder Anleger eines solchen Finanzprodukts wird als ein "Finanzproduktanleger" bezeichnet. Es kann weitere Risiken und Erwägungen geben, die nachstehend nicht aufgeführt sind und die potenzielle Anleger berücksichtigen sollten, die sich entweder aufgrund der besonderen Umstände ergeben oder allgemein relevant sind, unabhängig davon, ob sie sich aus Marktfaktoren oder anderen Faktoren ergeben. Insbesondere können andere Risiken betreffend das Finanzprodukt selbst bestehen. Jeder potenzielle Anleger sollte seine eigenen Nachforschungen anstellen und sich unter Berücksichtigung seiner eigenen Umstände eine eigene Meinung über die Eignung des Indexs bilden.

      Indexspezifische Risikoerwägungen

      Kosten

      Die Berechnung des Indexstandes beinhaltet einen Abzug für bestimmte Kosten. Diese Kosten werden in Übereinstimmung mit der in dieser Beschreibung angegebenen Methode berechnet. Ein solcher Abzug bzw. solche Abzüge bedeuten, dass der Indexstand geringer ist, als dies ohne Abzug von Kosten der Fall wäre.

      FX

      Die Berechnung des Indexniveaus erfolgt unter Bezugnahme auf bestimmte Fremdwährungswechselkurse. Wechselkurse von Fremdwährungen sind sehr volatil und werden von einer Reihe von Faktoren bestimmt und beeinflusst, darunter Angebot und Nachfrage nach Währungen an den internationalen Devisenmärkten, wirtschaftliche Faktoren einschliesslich der Inflationsraten in den betreffenden Ländern, Zinsunterschiede zwischen den jeweiligen Ländern, Wirtschaftsprognosen, internationale politische Faktoren, Änderungen der Zahlungsbilanzen und des Handels, inländische und internationale Inflationsraten, internationale Handelsbeschränkungen, Währungsabwertungen, Währungskonvertierbarkeit, Sicherheit von Finanzanlagen in der betreffenden Währung, Spekulationen und Massnahmen von Regierungen und Zentralbanken. Jeder dieser Umstände (oder eine Kombination von ihnen) kann zu unerwarteter Volatilität oder Illiquidität an den Devisenmärkten führen. Dies kann sich nachteilig auf die Indexstände auswirken, was sich wiederum nachteilig auf die Wertentwicklung der Finanzprodukte auswirken kann.

      Auswirkungen der veränderlichen Beteiligung

      Die Strategie, aus der sich der Index zusammensetzt, umfasst eine veränderliche Beteiligung in die Bestandteile des Anlageportfolios, das vom Verhältnis zwischen historischer und aktueller Volatilität des betreffenden Anlageportfolios sowie der Korrelation zwischen den Bestandteilen des Anlageportfolios abhängt. Daher kann die Strategie eine Beteiligung von weniger als 100 % bei positiven Renditen mit hoher realisierter Volatilität und eine Beteiligung von mehr als 100 % bei negativen Renditen mit niedriger realisierter Volatilität aufweisen.

      Faktoren, die sich auf die Wertentwicklung einer Anlageportfoliokomponente auswirken, können sich nachteilig auf das Indexniveau auswirken

      Eine Anlageportfoliokomponente besteht aus einem synthetischen Portfolio von Aktien, Futures oder anderen Vermögenswerten, und als solche ist die Wertentwicklung einer Anlageportfoliokomponente von den makroökonomischen Faktoren abhängig, die sich auf die Aktien, Futures oder andere Komponenten, aus denen sich ein solcher Anlageportfolio-Bestandteil zusammensetzt, beziehen, zu denen Zins- und Preisniveaus an den Kapitalmärkten, Währungsentwicklungen, politische Faktoren und (im Falle von Aktien) unternehmensspezifische Faktoren wie Ertragslage, Marktposition, Risikosituation, Marktliquidität der Aktien, Aktionärsstruktur und Dividendenpolitik gehören können.

      Eine Änderung der Zusammensetzung oder der Wegfall eines Anlageportfoliobestandteils könnte sich negativ auf den Marktwert eines Finanzprodukts auswirken

      Der Sponsor eines Anlageportfoliobestandteils kann die Bestandteile eines solchen Anlageportfoliobestandteils hinzufügen, streichen oder ersetzen oder andere methodische Änderungen vornehmen, die das Niveau eines oder mehrerer Bestandteile verändern könnten. Die Änderung von Komponenten eines Anlageportfolio-Bestandteils kann sich auf das Niveau eines solchen Anlageportfolio-Bestandteils auswirken, da eine neu hinzugefügte Komponente deutlich schlechter oder besser abschneiden kann als die Komponente, die sie ersetzt, was sich wiederum auf das Indexniveau und damit auf die Zahlungen im Rahmen eines Finanzprodukts auswirken kann. Der Sponsor eines solchen Anlageportfolio-Bestandteils kann auch die Berechnung oder Weiterverwendung dieses Anlageportfolio-Bestandteils ändern, einstellen oder aussetzen.

      Risiken in Zusammenhang mit der Änderung eines Anlageportfoliobestandteils, Entfernung eines Anlageportfoliobestandteils und Beeinträchtigung eines Anlageportfoliobestandteils

      Die Indexberechnungsstelle ist im Rahmen dieser Beschreibung befugt, nach einer Änderung eines Anlageportfoliobestandteils (im Wesentlichen Änderungen der Methodik eines Anlageportfoliobestandteils), einer Entfernung eines Anlageportfoliobestandteils (dauerhafte Entfernung eines Anlageportfoliobestandteils) und einer Beeinträchtigung eines Anlageportfoliobestandteils (Unterlassung der Berechnung und Veröffentlichung des Niveaus eines Anlageportfoliobestandteils) nach eigenem Ermessen bestimmte Festlegungen und Anpassungen vorzunehmen. Die Indexberechnungsstelle kann bestimmen, dass als Folge eines solchen Ereignisses Anpassungen in dieser Beschreibung vorzunehmen sind, und eine solche Bestimmung kann sich negativ auf die Rendite eines Finanzprodukts auswirken.

      Bestimmte Risiken in Zusammenhang mit der Benchmark-Verordnung

      Wenn es sich bei einem Vermögensportfoliobestandteil um einen "Benchmark" gemäss der Verordnung (EU) 2016/2011 vom 8 Juni 2016 ("Benchmark-Verordnung") handelt und (i) es für die Indexberechnungsstelle rechtswidrig wäre oder im Widerspruch zu geltenden Zulassungsanforderungen stünde, den Stand oder einen anderen Wert dieses Vermögensportfoliobestandteils zu bestimmen oder eine andere Ermittlung in Bezug auf den Index vorzunehmen, zu der sie andernfalls gemäss dieser Beschreibung verpflichtet wäre, (ii) wenn der betreffende Benchmark-Administrator eine solche Zulassung oder Registrierung nicht erhält oder aufrechterhält (je nach Fall) oder, falls es sich um eine Nicht-EU-Gesellschaft handelt, keine "Gleichwertigkeit" vorliegt und diese nicht anerkannt wird oder die Übergangsbestimmungen für eine solche Nicht-EU-Gesellschaft nicht gelten, oder (iii) der betreffende Benchmark-Administrator die Bereitstellung von Vermögensportfoliobestandteilen (entweder dauerhaft oder auf unbestimmte Zeit) einstellt (oder einstellen wird), dann kann die Indexberechnungsstelle bestimmen, dass eine Änderung der Zusammensetzung oder Berechnung des Index erforderlich ist, um einem solchen Nachfolger Rechnung zu tragen, und, falls dies der Fall ist, das Anpassungsverfahren mit dem Konsultationsprozess einzuleiten.

      Änderung von Zinsindex- und Aktien-, Rohstoff- und Devisenindex-"Benchmarks"

      Vermögensportfoliobestandteile, die als "Benchmarks" gelten, sind Gegenstand aktueller nationaler, internationaler und anderer aufsichtsrechtlicher Vorgaben und Reformvorschläge. Einige dieser Reformen sind bereits in Kraft, während andere noch umgesetzt werden müssen. Diese Reformen können dazu führen, dass sich solche "Benchmarks" anders als in der Vergangenheit entwickeln oder ganz verschwinden oder andere Folgen haben, die nicht vorhersehbar sind. Jede derartige Folge könnte wesentliche nachteilige Auswirkungen auf jedes Finanzprodukt haben.

      Jeder der internationalen, nationalen oder sonstigen Reformvorschläge oder die allgemeine verstärkte aufsichtsrechtliche Prüfung von "Benchmarks" könnte die Kosten und Risiken der Verwaltung oder anderweitigen Teilnahme an der Festlegung eines "Benchmarks" und der Einhaltung solcher Vorschriften oder Anforderungen erhöhen. Solche Faktoren können dazu führen, dass Marktteilnehmer davon abgehalten werden, bestimmte "Benchmarks" weiterhin zu verwalten, Änderungen der bei bestimmten "Benchmarks" verwendeten Regeln oder Methoden auslösen oder zum Verschwinden bestimmter "Benchmarks" führen. Das Verschwinden eines "Benchmark" könnte erheblich nachteilige Folgen in Bezug auf ein Finanzprodukt haben.

      Risiko, dass die Renditen eines Finanzprodukts nicht eine direkte Anlage in zugrundeliegende Aktien oder andere Vermögenswerte, die dem zugrundeliegenden MSCI-Index umfassen, widerspiegeln

      Die Rendite eines Finanzproduktes, die sich auf einen Index beziehen, der wiederum auf den zugrundeliegenden MSCI-Index verweist, entspricht möglicherweise nicht der Rendite, die ein Finanzproduktanleger erzielen würde, wenn er die betreffenden Vermögenswerte, welche die Komponenten des zugrundeliegenden MSCI-Index umfassen, tatsächlich besitzen würde. Anleger in Finanzprodukte, die an den zugrundeliegenden MSCI-Index gekoppelt sind (indirekt durch Bezugnahme auf den Index), erhalten möglicherweise eine geringere Rendite, als sie erhalten hätten, wenn sie direkt in die Bestandteile des zugrundeliegenden MSCI-Index investiert hätten.

      Art der zugrundeliegenden MS-Indizes

      Ein zugrundeliegender MS-Index ist ein fiktiver, regelbasierter Index, der seine Komponente(n) umfasst, und der Stand eines solchen zugrundeliegenden MS-Index kann sowohl nach unten als auch nach oben gehen, je nach der Wertentwicklung der Komponenten und ihrer Auswirkung auf die Strategie, zu deren Abbildung der zugrundeliegende MS-Index entwickelt wurde. Es gibt keine Garantie für die zukünftige Wertentwicklung eines solchen zugrundeliegenden MS-Index, und der Indexstand eines solchen zugrundeliegenden MS-Index an einem beliebigen Tag spiegelt möglicherweise weder seine vergangene noch seine zukünftige Wertentwicklung wider. Die Strategie, für die ein solcher zugrundeliegender MS-Index entwickelt wurde, ist möglicherweise nicht erfolgreich und andere Strategien, welche die Komponenten und alternativen Indizes und Benchmarks verwenden, können sich besser entwickeln als ein solcher zugrundeliegende MS-Index. Die (tatsächliche oder simulierte) Wertentwicklung eines zugrundeliegenden MS-Index in der Vergangenheit ist kein Hinweis auf seine zukünftige Wertentwicklung.

      Potenzielle Finanzproduktanleger sollten mit Anlagen an den globalen Finanz- und Rohstoffmärkten, Finanzinstrumenten und Indizes im Allgemeinen vertraut sein.

      Ein Finanzproduktanleger hat keine Rechte in Bezug auf einen solchen zugrundeliegenden MS-Index oder Komponenten eines solchen zugrundeliegenden MS-Index

      Die Anlagen eines zugrundeliegenden MS-Index sind fiktiv bzw. synthetisch. Finanzproduktanleger haben (1) kein rechtliches oder wirtschaftliches Eigentumsrecht an einem zugrundeliegenden MS-Index oder an einer Komponente, die einen zugrundeliegenden MS-Index (oder Komponenten davon) umfasst, und haben daher keinen Rückgriff auf eine solche Komponente; (2) haben kein Recht, eine solche Komponente zu erhalten; (3) haben keine allgemeinen Rechte in Bezug auf eine solche Komponente (sei es in Bezug auf Stimmrechte oder anderweitig); und (4) haben kein Recht, Dividenden, Ausschüttungen oder andere Zahlungen in Bezug auf eine solche Komponente zu erhalten.

      Ein zugrundeliegender MS-Index kann eine begrenzte Historie aufweisen und sich in unerwarteter Weise entwickeln

      Ein zugrundeliegender MS-Index kann eine relativ neue Strategie aufweisen. Wenn in Bezug auf die Komponenten, auf die sich ein solcher zugrundeliegender MS-Index bezieht, und/oder dem zugrundeliegenden MS-Index selbst nur begrenzte vergangene Performancedaten vorliegen, kann eine Anlage, deren Renditen an die Wertentwicklung eines solchen zugrundeliegenden MS-Index oder seiner Komponenten gekoppelt sind, mit einem grösseren Risiko verbunden sein als eine Anlage, die an Renditen gekoppelt ist, die von einer Anlagestrategie mit einer nachgewiesenen Erfolgsbilanz erzielt werden. Zwar könnte eine längere Historie der tatsächlichen Wertentwicklung zuverlässigere Informationen liefern, auf deren Grundlage die Gültigkeit einer Strategie, die ein zugrundeliegender MS-Index widerspiegeln soll, beurteilt und eine Anlageentscheidung getroffen werden kann, doch die Tatsache, dass ein solcher Index und/oder die entsprechenden Komponenten relativ neu sind, lässt dies nicht zu. Es kann nicht garantiert oder zugesichert werden, dass ein zugrundeliegender MS-Index oder seine Komponenten in einer Weise funktionieren, die mit den verfügbaren Daten übereinstimmen.

      Die Absicherungsaktivitäten von Morgan Stanley oder eines mit Morgan Stanley verbundenen Unternehmens können sich auf den Stand eines zugrundeliegenden MS-Index auswirken

      Durch die Verwendung von Produkten, die an einen zugrundeliegenden MS-Index gekoppelt sind, haben Morgan Stanley und/oder ihre verbundenen Unternehmen eine Beteiligung in diesem zugrundeliegenden MS-Index und seinen Komponenten. Morgan Stanley wird Risikopositionen eingehen, um dieses Risiko nach eigenem Ermessen und in der Eigenschaft als Emittent abzusichern. Finanzproduktanleger haben keine Rechte in Bezug auf die Absicherungspositionen von Morgan Stanley, einschliesslich, aber nicht beschränkt auf Aktien, Futures, Optionen, Rohstoffe oder Währungen. Morgan Stanley kann seine Absicherungsaktivität durch den Handel mit den Komponenten eines zugrundeliegenden MS-Index jederzeit ausführen, was sich nachteilig auf die Wertentwicklung eines zugrundeliegenden MS-Index auswirken kann. Die Hedging-Aktivität von Morgan Stanley und damit das Ausmass dieser Auswirkungen kann mit der Menge an neuen und ausstehenden Produkten (einschliesslich Finanzprodukten) verbunden sein, die zum jeweiligen Zeitpunkt an den betreffenden zugrundeliegenden MS-Index gebunden sind.

      Darüber hinaus kann Morgan Stanley Erträge erzielen, wenn es ihre Hedging-Aktivitäten auf anderen Ebenen ausführt als denen, die zur Bestimmung des Wertes eines zugrundeliegenden MS-Index verwendet werden. Solche Hedging-Aktivitäten können für Morgan Stanley erhebliche Erträge generieren, die nicht an die Finanzproduktanleger weitergegeben werden.

      Morgan Stanley oder ein mit Morgan Stanley verbundenes Unternehmen in seiner Eigenschaft als Sponsor oder Berechnungsstelle in Bezug auf einen zugrundeliegenden MS-Index ist befugt, Entscheidungen zu treffen, die sich wesentlich auf einen solchen zugrundeliegenden MS-Index auswirken und Interessenkonflikte verursachen könnten

      Morgan Stanley oder ein mit Morgan Stanley verbundenes Unternehmen in seiner Eigenschaft als Sponsor eines zugrundeliegenden MS-Index und/oder gegebenenfalls als Berechnungsstelle eines solchen zugrundeliegenden MS-Index übt im Allgemeinen keinen Ermessensspielraum in Bezug auf die Funktionsweise eines solchen zugrundeliegenden MS-Index aus. Morgan Stanley schuldet keine treuhänderischen Pflichten in Bezug auf einen solchen zugrundeliegenden MS-Index. Morgan Stanley kann jedoch in bestimmten begrenzten Situationen Ermessen ausüben, einschliesslich, aber nicht beschränkt auf die Situationen, die in einer Beschreibung des betreffenden zugrundeliegenden MS-Index beschrieben sind. Entscheidungen, die Morgan Stanley als Sponsor und gegebenenfalls als Berechnungsstelle eines solchen zugrundeliegenden MS-Index trifft, könnten sich nachteilig auf den Wert dieses zugrundeliegenden MS-Index auswirken und die Ausübung des Ermessens durch Morgan Stanley könnte einen Interessenkonflikt darstellen. Vorbehaltlich der Bestimmungen in den Indexregeln in Bezug auf einen zugrundeliegenden MS-Index ist der Sponsor und/oder die Berechnungsstelle eines solchen Index nicht verpflichtet, die Interessen eines Finanzproduktanlegers zu berücksichtigen oder die Auswirkungen seiner Festlegungen auf den Wert eines Finanzprodukts in Betracht zu ziehen, und wird dies auch nicht tun. Alle Festlegungen des jeweiligen Sponsors und/oder der Berechnungsstelle sind für alle Zwecke (einschliesslich, aber nicht beschränkt auf alle Finanzprodukte) endgültig und binden alle Finanzproduktanleger. Der Strategie-Sponsor und/oder die Berechnungsstelle übernehmen in Bezug auf einen zugrundeliegenden MS-Index keine Haftung für solche Festlegungen.

      Der Wert der Absicherungsoption wird unter Bezugnahme auf ein internes Modell der Morgan Stanley Gruppe berechnet - Der Wert der Absicherungsoption, der als Teil der Berechnung des Indexstands verwendet wird, wird unter Bezugnahme auf ein internes Modell der Morgan Stanley Gruppe berechnet. Anleger, die andere Methoden und Modelle verwenden, können einen anderen Wert der Absicherungsoption als den von der Morgan Stanley Gruppe ermittelten erhalten, der bei Verwendung solcher Methoden und Modelle günstiger sein kann.

      Allgemeine Indexrisikoerwägungen

      Die Wertentwicklung des Index ist Schwankungen unterworfen

      Der Index ist ein fiktiver, regelbasierter Index, der sich aus den Indexkomponenten zusammensetzt, und der Indexstand kann sinken. Die in dieser Beschreibung beschriebene Indexmethodik wurde auf der Grundlage historischer Daten und Bedingungen entwickelt, und es gibt keine Zusicherung, dass die Methodik in der Zukunft eine positive Wertentwicklung erzielen wird. Die Wertentwicklung des Index ist von vielen Faktoren abhängig, einschliesslich der Entwicklungen und Trends an den Märkten für die Indexbestandteile. Die Wertentwicklung des Index kann sowohl nach oben als auch nach unten gehen und kann erhebliche Verluste verzeichnen, einschliesslich in einigen Fällen, dass der Index auf 90 % seines anfänglichen Indexstandes fällt. Die (tatsächliche oder simulierte) Wertentwicklung des Index in der Vergangenheit ist kein Hinweis auf seine zukünftige Wertentwicklung.

      Risiken und Chancen eines Finanzprodukts

      Anleger in Finanzprodukte sollten sicherstellen, dass sie die wirtschaftlichen Bedingungen des jeweiligen Finanzprodukts und nicht nur die Bedingungen des Index prüfen, um die Risiken und Chancen einer Anlage in ein solches Finanzprodukt zu verstehen.

      Der Index ist keine Anlage in die Bestandteile des Vermögensportfolios oder die Absicherungsoption

      Der Index wird als "fiktiver" Index berechnet. Das bedeutet, dass der Index zum Teil unter Bezugnahme auf den Schlussstand der Bestandteile des Anlageportfolios und dem Wert der Absicherungsoption berechnet wird. Der Indexsponsor ist jedoch nicht verpflichtet, für die Berechnung des Index eine Beteiligung in Bezug auf einen Vermögensportfoliobestandteil oder die Absicherungsoption einzugehen.

      Ein Finanzproduktanleger hat keine Rechte in Bezug auf Indexkomponenten

      Das durch den Index bereitgestellte Anlagerisiko ist synthetisch. Eine Anlage, die sich auf einen Index bezieht, macht einen Finanzproduktanleger daher nicht zu einem Inhaber eines Index oder eines Indexbestandteils (oder eines Bestandteils davon) und verschafft ihm auch keine direkte Anlageposition in diesen.

      Keine Haftung

      Ungeachtet anderer Bestimmungen in dieser Beschreibung und vorbehaltlich geltender Gesetze oder Vorschriften haften der Indexsponsor oder die Indexberechnungsstelle, jeweils in ihrer Funktion, in keinem Fall (weder direkt noch indirekt, vertraglich, aus unerlaubter Handlung oder anderweitig) für Verluste, die einer Person aus oder in Verbindung mit dem Index entstehen, einschliesslich in Bezug auf die Erfüllung der jeweiligen Aufgaben des Indexsponsors oder der Indexberechnungsstelle gemäss dieser Beschreibung, wobei der Indexsponsor und die Indexberechnungsstelle von jeglicher Haftung aufgrund von Betrug oder Handlungen oder Unterlassungen, die einen Verstoss gegen anwendbare Gesetze darstellen, nicht befreit sind.

      Der Indexsponsor kann unter bestimmten Umständen Anpassungen an dieser Beschreibung vornehmen

      Der Indexsponsor kann ohne Rücksprache mit den Finanzproduktanlegern Anpassungen an dieser Beschreibung vornehmen, wenn der Indexsponsor festgestellt hat, dass eine solche Änderung für die Finanzproduktanleger nicht wesentlich ist, einschliesslich wenn sie formaler, geringfügiger oder technischer Natur ist. Bevor der Indexsponsor sonstige Anpassungen an dieser Beschreibung vornimmt, wird er die Finanzproduktanleger vorab informieren. Solche Anpassungen können unter anderem Folgendes umfassen (i) die Anpassung eines relevanten Indexkomponentenwertes, (ii) das Ersetzen oder Entfernen einer Indexkomponente, (iii) die Verschiebung der Veröffentlichung eines Indexstandes oder (iv) die Aussetzung oder Aufhebung des Index. Jegliche Anpassungen, die am Index vorgenommen werden, können sich auf seine künftige Wertentwicklung auswirken und zu einer nachteiligen Rendite für einen Finanzproduktanleger führen.

      Ermessensspielraum

      Diese Beschreibung räumt dem Indexsponsor und der Indexberechnungsstelle das Recht ein, Festlegungen, Berechnungen, Anpassungen und Änderungen in Bezug auf den Index und damit zusammenhängende Angelegenheiten vorzunehmen, die unter bestimmten Umständen einen gewissen Ermessensspielraum beinhalten, um sicherzustellen, dass der Index, soweit vernünftigerweise praktikabel, ungeachtet der jeweiligen Umstände weiterhin berechnet und bestimmt werden kann, oder um eine Verzögerung oder Aufhebung des Index zu ermöglichen (einschliesslich, aber nicht beschränkt auf das Eintreten bestimmter Anpassungsereignisse, bestimmter Verwässerungs- oder Konzentrationsereignisse oder anderer Marktstörungsereignisse in Bezug auf Indexbestandteile, wie in dieser Beschreibung angegeben). Zu solchen Anpassungen kann unter anderem die Anpassung der Zusammensetzung des Index gehören, wodurch Finanzproduktanleger dem Risiko ausgesetzt werden, dass sich jeder Ersatzindexbestandteil anders entwickelt als der ursprüngliche Indexbestandteil, was sich nachteilig auf die Wertentwicklung des Index auswirken kann.

      Der Indexsponsor und die Indexberechnungsstelle werden diese Ermessensspielräume so weit wie möglich mit dem Ziel ausüben, sicherzustellen, dass der Index weiterhin so genau wie möglich das zugrundeliegende wirtschaftliche Interesse widerspiegelt, das er repräsentieren soll. Die Ausübung dieser Ermessensspielräume kann einen erheblichen Einfluss auf den Index und ein Finanzprodukt haben. Finanzproduktanleger sollten beachten, dass sie der Ausübung dieser Ermessensspielräume durch den Indexsponsor und die Indexberechnungsstelle ausgesetzt sind und dass der Indexsponsor und die Indexberechnungsstelle bei der Ausübung dieser Ermessensspielräume nicht verpflichtet sind, die Interessen anderer Personen, einschliesslich (aber nicht beschränkt auf) Finanzproduktanleger, zu berücksichtigen. Der Indexsponsor und die Indexberechnungsstelle sind, sofern nicht anders angegeben, verpflichtet, nach billigem Ermessen zu handeln; es kann jedoch nicht garantiert werden, dass die Ausübung eines solchen Ermessens (bzw. die Nichtausübung eines solchen Ermessens) den Indexstand nicht erhöht oder senkt und/oder die Volatilität des Index verändert.

      Abhängigkeit von der Wertentwicklung des Korbs der Indexbestandteile

      Selbst im Falle einer positiven Wertentwicklung eines oder mehrerer Indexbestandteile kann die Wertentwicklung des Korbs der Indexbestandteile insgesamt negativ sein, wenn die Wertentwicklung der anderen Indexbestandteile in höherem Masse negativ ist.

      Politische und wirtschaftliche Faktoren

      Die Werte der Indexbestandteile können durch eine Reihe von Umständen beeinflusst werden, unter anderem durch politische Ereignisse, allgemeine wirtschaftliche Bedingungen, staatliche Eingriffe, Änderungen der Zahlungsbilanz und der Handelsbilanz, nationale und internationale Inflationsraten, internationale Handelsbeschränkungen und Währungsabwertungen. Jeder dieser Umstände (oder eine Kombination von ihnen) kann zu unerwarteter Volatilität oder Illiquidität an den betreffenden Märkten führen. Der Index kann solche Ereignisse nicht berücksichtigen und infolgedessen können Anlageverluste auftreten, die sich wiederum negativ auf die Wertentwicklung eines Finanzprodukts auswirken können.

      In Bezug auf Schwellen- oder Entwicklungsländer besteht die Möglichkeit der Verstaatlichung, Enteignung oder Beschlagnahme, politischer Veränderungen, staatlicher Regulierung, sozialer Instabilität oder sonstiger Entwicklungen (einschliesslich Krieg), die sich nachteilig auf die Volkswirtschaften dieser Länder oder die Werte der Indexbestandteile auswirken können, die mit diesen Ländern verbunden sind oder eine Beteiligung in diesen Ländern haben.

      Marktvolatilität

      Die den Indexbestandteilen zugrundeliegenden Märkte (insbesondere und gegebenenfalls Rohstoffe, Metalle, Finanzinstrumente, Zinssätze und Indizes) können volatil sein und plötzlichen Schwankungen unterschiedlichen Ausmasses unterliegen, die unter anderem durch staatliche Handels-, Steuer-, Geld- und Devisenkontrollprogramme und -politik, nationale und internationale politische und wirtschaftliche Ereignisse sowie Zinsänderungen beeinflusst werden können. Die Volatilität solcher zugrundeliegenden Märkte kann es schwierig oder unmöglich machen, Wertschwankungen der Indexbestandteile vorherzusagen oder zu antizipieren, was zu Verlusten und einer nachteiligen Auswirkung auf den Index führen kann.

      Regelbasierter Index

      Der Index ist quantitativ und regelbasiert und wird nicht aktiv von der Morgan Stanley Gruppe oder einer dritten Partei verwaltet. Folglich liegt es nicht im Ermessen der Morgan Stanley Gruppe, diese Beschreibung zu ändern, wenn es signifikante Änderungen in der Wertentwicklung der Indexbestandteile gibt, die dazu führen, dass der Index signifikant sinkt oder sich unterdurchschnittlich entwickelt.

      Informationen über den Index sind keine Garantie für die Wertentwicklung des Index - Bestimmte Präsentationen und historische Analysen oder andere statistische Analysematerialien in Bezug auf die Funktionsweise und/oder die potenziellen Renditen des Index, die möglicherweise zur Verfügung gestellt werden, basieren auf einer Reihe von Annahmen, historischen Schätzungen, simulierten Analysen und hypothetischen Umständen, um abzuschätzen, wie sich der Index vor seinem tatsächlichen Bestehen entwickelt haben könnte. Der Indexsponsor kann historische Daten verwenden, die verfügbar sind, um den hypothetischen Stand des Index vor seiner Auflegung zu berechnen. Stellt der Indexsponsor fest, dass solche historischen Daten nicht verfügbar oder unvollständig sind, kann der Indexsponsor anstelle dieser historischen Daten alternative Datenquellen verwenden sowie bestimmte Änderungen an der Indexmethodik vornehmen, die er für erforderlich hält, um den hypothetischen Stand des Index vor dessen Auflegung zu berechnen. Der Indexsponsor gibt keine Zusicherung oder Garantie dafür ab, dass der Index in der Vergangenheit in einer Weise funktioniert hat oder funktioniert hätte, die mit diesen Materialien übereinstimmt.

      Begrenzte Informationen und unvorhergesehene Wertentwicklung

      Der Index ist eine relativ neue Strategie. Da in Bezug auf die Indexbestandteile und den Index selbst nur begrenzte historische Performancedaten vorliegen, kann eine Anlage, deren Renditen an die Wertentwicklung des Index oder der Indexbestandteile gekoppelt sind, mit einem grösseren Risiko verbunden sein als eine Anlage, die an Renditen gekoppelt ist, die durch eine Anlagestrategie mit einer nachgewiesenen Erfolgsbilanz erzielt werden. Während eine längere Historie der tatsächlichen Wertentwicklung zuverlässigere Informationen liefern könnte, auf deren Grundlage die Gültigkeit des Index beurteilt und eine Anlageentscheidung getroffen werden könnte, ist dies aufgrund der Tatsache, dass der Index und die Indexbestandteile relativ neu sind, nicht möglich. Es kann nicht garantiert oder zugesichert werden, dass sich der Index oder die Indexbestandteile in einer Weise verhalten, die mit den verfügbaren Daten übereinstimmt.

      Abhängigkeit von Informationen

      Berechnungen in Bezug auf den Index können auf Informationen beruhen, die aus verschiedenen öffentlich zugänglichen Quellen stammen. Die Morgan Stanley Gruppe und die Indexberechnungsstelle haben sich auf diese Quellen verlassen und werden sich auf diese verlassen. Darüber hinaus haben die Morgan Stanley Gruppe und die Indexberechnungsstelle die diesen Quellen entnommenen Informationen nicht unabhängig verifiziert und werden sie auch nicht unabhängig verifizieren. Dementsprechend besteht für Finanzproduktanleger das Risiko, dass diese Informationen Dritter ungenau oder unvollständig sind, und unter diesen Umständen wird sich jede solche Ungenauigkeit oder Unvollständigkeit in der Berechnung des Index widerspiegeln und kann sich wesentlich auf die Wertentwicklung des Index auswirken.

      Keine Offenlegung von Informationen

      Die Morgan Stanley Gruppe kann jederzeit im Besitz von Informationen in Bezug auf Indexkomponenten sein, die den Finanzproduktanlegern möglicherweise nicht zur Verfügung stehen. Kein Mitglied der Morgan Stanley Gruppe ist verpflichtet, solche Informationen gegenüber Finanzproduktanlegern offenzulegen.

      Interessenkonflikt

      Die Morgan Stanley Gruppe (einschliesslich der Indexberechnungsstelle und des Indexsponsors) kann sich von Zeit zu Zeit auf eigene Rechnung und/oder auf Rechnung ihrer Kunden an Transaktionen mit den Indexbestandteilen beteiligen und als Market-Maker für diese Indexbestandteile auftreten. Solche Aktivitäten kommen möglicherweise nicht den Finanzproduktanlegern zugute und können sich auf den Wert des Index und folglich auf den Wert und die Wertentwicklung der Finanzprodukte auswirken. Darüber hinaus kann die Morgan Stanley Gruppe von Zeit zu Zeit in anderen Funktionen tätig werden, wie z.B. als Emittent von Finanzanlagen oder als Berater. Unternehmen der Morgan Stanley Gruppe können auch Finanzinstrumente emittieren, halten oder Geschäft diesbezüglich abschliessen und/oder Derivatkontrakte in Bezug auf die Indexbestandteile abschliessen, und die Verwendung solcher Instrumente und/oder Derivate kann den Wert der Indexbestandteile beeinflussen. Die Unternehmen der Morgan Stanley Gruppe können, sind aber nicht verpflichtet, Absicherungsgeschäfte in Bezug auf die Indexbestandteile abzuschliessen, um Verpflichtungen in Bezug auf Finanzprodukte zu erfüllen oder zu einem anderen Zweck, der den Wert dieser Bestandteile oder von Finanzprodukten beeinflussen kann. Wenn sie dies tun, haben die Unternehmen der Morgan Stanley Gruppe bestimmte Rechte gemäss solchen Absicherungsgeschäften und/oder in Bezug auf alle Transaktionen, die ihnen eine Beteiligung in Indexkomponenten verschafft haben, und sie werden Massnahmen vornehmen und Schritte unternehmen, die sie für angemessen halten, um ihre eigenen Interessen zu schützen.

      Darüber hinaus kann die Auflösung solcher Absicherungsgeschäfte den Wert solcher Indexbestandteile oder -instrumente beeinflussen, was sich auf den Wert des Index auswirken kann. Die Unternehmen der Morgan Stanley Gruppe können Gewinne und/oder Verluste aus solchen Absicherungsgeschäften erzielen. Bei der Ausübung einer dieser Funktionen ist kein Mitglied der Morgan Stanley Gruppe, vorbehaltlich der geltenden Gesetze oder Vorschriften, verpflichtet, die Interessen von Personen, einschliesslich (aber nicht beschränkt auf) Finanzproduktanleger, zu berücksichtigen.

      Rechtsstreitigkeiten und Auseinandersetzungen

      Der Indexsponsor, die Indexberechnungsstelle oder ein Mitglied der Morgan Stanley Gruppe können Gegenstand von Rechtsstreitigkeiten oder Schiedsgerichtsverfahren oder Auseinandersetzungen mit anderen Unternehmen sein. Jedes derartige Ereignis kann die Fähigkeit des Indexsponsors oder der Indexberechnungsstelle beeinträchtigen, ihre Pflichten in Bezug auf den Index zu erfüllen, und dies kann sich daher nachteilig auf den Index und infolgedessen auf jedes Finanzprodukt auswirken.

      Morgan Stanley Research

      Die Morgan Stanley Gruppe kann Research-Berichte über Wertpapiere oder andere Finanzinstrumente herausgeben, die Indexbestandteile sind oder werden können. Diese Berichte sind unabhängig von den in dieser Beschreibung beschriebenen Verpflichtungen des Indexsponsors und der Indexberechnungsstelle.

      Die Festlegungen des Indexsponsors sind endgültig und abschliessend

      Die Indexberechnungsstelle ist für die Zusammenstellung und Berechnung des Index gemäss dieser Beschreibung verantwortlich und hat bestimmte Ermessensspielräume in Bezug auf den Index. Der Indexsponsor behält sich das Ermessen vor, eine alternative Indexberechnungsstelle zu ernennen. Es liegt im Ermessen des Indexsponsors, in welcher Weise der Index berechnet und konstruiert wird. Darüber hinaus hat der Indexsponsor die endgültige Entscheidungsgewalt über den Index und die Auslegung und Anwendung dieser Beschreibung. Der Indexsponsor gibt keine (implizite oder sonstige) Zusicherung hinsichtlich der Wertentwicklung eines Indexbestandteils und/oder des Index ab.

      Steuerliche Erwägungen

      Im Juli 2015 haben das US-Finanzministerium und die Finanzbehörde ("IRS") eine Mitteilung veröffentlicht, in der bestimmte "Basket-Kontrakte" und im Wesentlichen ähnliche Transaktionen als " Transaktion von Interesse " bezeichnet werden, die als "meldepflichtige Transaktionen" gemäss Abschnitt 6011 des U.S. Internal Revenue Code von 1986 in seiner aktuellen Fassung der Informationspflicht unterliegen. Der Umfang dieser Mitteilung ist unklar, und es ist daher möglich, dass die Finanzprodukte der Mitteilung unterliegen könnten. In diesem Fall wären die Anleger der Finanzprodukte verpflichtet, dem IRS bestimmte Informationen zu melden, wie sie in den geltenden Vorschriften des Finanzministeriums über "meldepflichtige Transaktionen" festgelegt sind. Wenn der IRS feststellt, dass es sich bei einer solchen Transaktion um eine Transaktion von Interesse handelt, und Anleger in Finanzprodukte es versäumen, die Transaktion offenzulegen, könnten gegen sie Strafen verhängt werden. Anleger in Finanzprodukte sollten ihre Steuerberater hinsichtlich der möglichen Anwendung dieser Mitteilung auf Finanzprodukte konsultieren.

      Risk factors

      Risk Factors and Investment Considerations

      Prior to making an investment decision in respect of any Financial Product, prospective investors should consider carefully all of the information set out in this Description, including in this Section 2 (Risk Factors and Investment Considerations). This Section 2 (Risk Factors and Investment Considerations) is intended to describe various risk factors which the Index Sponsor believes represent the principal risks associated with any securities issues, derivative transactions or other financial product the return of which is linked to, or otherwise determined by reference to, the Index (each such issue, transaction or product, a “Financial Product”). Each investor in relation to a Financial Product is referred to as a “Financial Product Investor”. There may be other risks and considerations not set out below that prospective investors should consider that are relevant either to their particular circumstances or more generally, whether arising from market factors or otherwise. In particular, other risks may exist in relation to the Financial Product itself. Each prospective investor should make their own investigations and form their own views as to the appropriateness or otherwise of the Index taking into account their own circumstances.

      Index Specific Risk Considerations

      Costs

      The calculation of the Index Level includes a deduction for certain costs. Such costs are calculated in accordance with the methodology specified in this Description. Any such deduction(s) shall mean that the Index Level is less than would be the case if no costs were deducted.

      FX

      The calculation of the Index Level is made by reference to certain foreign currency exchange rates. Foreign currency exchange rates are highly volatile and determined by and influenced by a number of factors, including supply and demand for currencies in the international foreign exchange markets, economic factors including inflation rates in the countries concerned, interest rate differences between the respective countries, economic forecasts, international political factors, changes in balances of payments and trade, domestic and international rates of inflation, international trade restrictions, currency devaluations, currency convertibility, safety of making financial investments in the currency concerned, speculation and measures taken by governments and central banks. Any such circumstance (or a combination of them) may cause unexpected volatility or illiquidity in the foreign currency markets. This may have an adverse effect on the Index Levels which may in turn have an adverse effect on the performance of any Financial Product.

      Impact of Variable Exposure

      The Strategy which comprises the Index has a variable exposure to the Asset Portfolio Components that is a function of the ratio of the Annualised Volatility Budget and the realised volatility of the relevant Asset Portfolio and the correlation between the Asset Portfolios. As such, the Strategy may have less than 100% exposure to positive returns with high realised volatility and greater than 100% exposure to negative returns with low realised volatility.

      Factors affecting the performance of an Asset Portfolio Component may adversely affect the Index Level

      An Asset Portfolio Component is comprised of a synthetic portfolio of shares, futures or other assets, and as such, the performance of an Asset Portfolio Component is dependent upon the macroeconomic factors relating to the shares, futures or other components that comprise such Asset Portfolio Component, which may include interest and price levels on the capital markets, currency developments, political factors and (in the case of shares) company-specific factors such as earnings position, market position, risk situation, market liquidity for the shares, shareholder structure and dividend policy.

      A change in the composition or discontinuance of Asset Portfolio Component could adversely affect the market value of a Financial Product

      The sponsor of any Asset Portfolio Component may add, delete or substitute the components of such Asset Portfolio Component or make other methodological changes that could change the level of one or more components. The changing of components of any Asset Portfolio Component may affect the level of such Asset Portfolio Component as a newly added component may perform significantly worse or better than the component it replaces, which in turn may affect the Index Level and, therefore, payments made under a Financial Product. The sponsor of any such Asset Portfolio Component may also alter, discontinue or suspend calculation or dissemination of such Asset Portfolio Component.

      Exposure to Asset Portfolio Component Modification, Asset Portfolio Component Cancellation and Asset Portfolio Component Disruption

      The Index Calculation Agent has discretionary authority under this Description to make certain determinations and adjustments following an Asset Portfolio Component Modification (broadly, changes in the methodology of an Asset Portfolio Component), Asset Portfolio Component Cancellation (permanent cancellation of an Asset Portfolio Component) and Asset Portfolio Component Disruption (failure to calculate and publish the level of an Asset Portfolio Component). The Index Calculation Agent may determine that the consequence of any such event is to make adjustments to this Description and any such determination may have a negative adverse effect on the return of a Financial Product.

      Certain risks in relation to the Benchmarks Regulation

      If an Asset Portfolio Component is a "benchmark" under the Benchmarks Regulation and (i) it would be unlawful or contradictory to any applicable licensing requirements for the Index Calculation Agent to determine the level or other value of such Asset Portfolio Component or make any other determination in respect of the Index which it would otherwise be obliged to do so pursuant to this Description, (ii) if the relevant benchmark administrator does not obtain or maintain (as applicable) such authorisation or registration or, if a non-EU entity, "equivalence" is not available and it is not recognised or the transitional provisions do not apply to such non-EU entity or (iii) the relevant benchmark administrator ceases (or will cease) to provide Asset Portfolio Component is (either permanently or indefinitely), then the Index Calculation Agent may determine that a change in the composition or calculation of the Index is required to account for such successor and, if so, the procedures under Section 10.3 (Adjustment procedures, notification and consultation process) will apply.

      Reform of interest rate index and equity, commodity and foreign exchange rate index “benchmarks”

      Asset Portfolio Components which are deemed to be “benchmarks” are the subject of recent national, international and other regulatory guidance and proposals for reform. Some of these reforms are already effective while others are still to be implemented. These reforms may cause such “benchmarks” to perform differently than in the past, or to disappear entirely, or have other consequences which cannot be predicted. Any such consequence could have a material adverse effect on any Financial Product.

      Any of the international, national or other proposals for reform or the general increased regulatory scrutiny of “benchmarks” could increase the costs and risks of administering or otherwise participating in the setting of a “benchmark” and complying with such regulations or requirements. Such factors may have the effect of discouraging market participants from continuing to administer certain “benchmarks”, trigger changes in the rules or methodologies used in certain “benchmarks” or lead to the disappearance of certain “benchmarks”. The disappearance of a “benchmark” could have materially adverse consequences in relation to a Financial Product.

      Exposure to the risk that returns on a Financial Product do not reflect a direct investment in underlying shares or other assets comprising the Underlying MSCI Index

      The return payable on Financial Products that reference an Index which in turn references the Underlying MSCI Index may not be the same as the return a Financial Product Investor would realise if you actually owned the relevant assets comprising the components of the Underlying MSCI Index. Financial Product Investors may receive a lower return on a Financial Product linked to the Underlying MSCI Index (indirectly by referencing the Index) than they would have received if they had invested in the components of the Underlying MSCI Index directly.

      Nature of Underlying MS Indices

      An Underlying MS Index is a notional, rules-based index comprising its component(s) and the level of such Underlying MS Index may go down as well as up, depending on the performance of the components and their effect on the strategy that the Underlying MS Index has been developed to reflect. There can be no assurance as to the future performance of any such Underlying MS Index, and the index level of such Underlying MS Index on any day may not reflect either its past performance or its future performance. The strategy that any such Underlying MS Index has been developed to reflect may not be successful, and other strategies using the components and alternative indices and benchmarks may perform better than such Underlying MS Index. Any past performance of an Underlying MS Index (actual or simulated) is not an indication of its future performance.

      Prospective Financial Product Investors should be familiar with investments in the global financial and commodity markets, financial instruments and indices generally.

      A Financial Product Investor will have no rights in respect of such Underlying MS Index or any components of such Underlying MS Index

      The investment exposure provided by any Underlying MS Index is notional or synthetic. Financial Product Investors will (1) have no legal or beneficial ownership interest in any Underlying MS Index or any component comprising an Underlying MS Index (or components thereof) and therefore have no recourse to any such component; (2) have no right to take delivery of any such component; (3) have no rights generally with respect to any such component (where in relation to voting or otherwise); and (4) have no right to receive dividends, distributions or other payments with respect to any such component.

      An Underlying MS Index may have a limited operating history and may perform in unanticipated ways

      An Underlying MS Index may be a relatively new strategy. Where limited historical performance data exists with respect to the components referenced by such Underlying MS Index and/or the Underlying MS Index itself, any investment in respect of which returns are linked to the performance of such an Underlying MS Index or its components may involve greater risk than an investment linked to returns generated by an investment strategy with a proven track record. While a longer history of actual performance could provide more reliable information on which to assess the validity of a strategy that an Underlying MS Index is intended to reflect and on which to base an investment decision, the fact that such an index and/or the relevant components are relatively new would not allow this. There can be no guarantee or assurance that an Underlying MS Index or its components will operate in a manner consistent with the data available.

      Morgan Stanley or an affiliate of Morgan Stanley’s hedging activity may affect the level of an Underlying MS Index

      By executing products linked to an Underlying MS Index, Morgan Stanley and/or its affiliates will have an exposure to such Underlying MS Index and its components. Morgan Stanley will take risk positions to hedge this exposure in its sole discretion and in a principal capacity. Financial Product Investors will not have any rights in respect of any Morgan Stanley hedge positions, including without limitation, any shares, futures, options, commodities or currencies. Morgan Stanley may execute its hedging activity by trading in the components of any Underlying MS Index at any time and this may have an adverse impact on the performance of an Underlying MS Index. Morgan Stanley’s hedging activity, and hence the size of such impact, may be linked to the amount of new and outstanding products (including any Financial Products) linked to the relevant Underlying MS Index at the relevant time.

      Additionally, Morgan Stanley may generate revenues if it executes its hedging activity at different levels from those used to determine the value of an Underlying MS Index. Such hedging activity could generate significant returns to Morgan Stanley that will not be passed on to Financial Product Investors.

      Morgan Stanley or an affiliate of Morgan Stanley in its capacity as sponsor or calculation agent in respect of an Underlying MS Index has the authority to make determinations that could materially affect such Underlying MS Index and create conflicts of interest

      Morgan Stanley or an affiliate of Morgan Stanley in its capacity as the sponsor of an Underlying MS Index and/or, if applicable, the calculation agent of such an Underlying MS Index does not generally exercise any discretion in relation to the operation of such Underlying MS Index. Morgan Stanley owes no fiduciary duties in respect of such Underlying MS Index. Morgan Stanley may, however, exercise discretion in certain limited situations including, but not limited to, those situations described in any description of the relevant Underlying MS Index. Determinations made by Morgan Stanley as the sponsor and, if applicable, calculation agent of such an Underlying MS Index could adversely affect the level of such Underlying MS Index and the exercise by Morgan Stanley of its discretion could present it with a conflict of interest. Subject as provided in the Index Rules in respect of an Underlying MS Index, in making those determinations, the sponsor and/or the calculation agent, as applicable, of such index will not be required to, and will not, take the interests of any Financial Product Investor into account or consider the effect its determinations will have on the value of any Financial Product. All determinations made by relevant sponsor and/or the calculation agent shall be (including, without limitation, any Financial Products) conclusive for all purposes and will bind all Financial Product Investors. The strategy sponsor and/or the calculation agent in respect of an Underlying MS Index shall not have any liability for such determinations.

      The value of the Protection Option is calculated by reference to an internal model of the Morgan Stanley Group – The value of the Protection Option, which is used as part of the calculation of the Index Level, is calculated by reference to an internal model of the Morgan Stanley Group. Investors using other practices and models may obtain a different value of the Protection Option to those obtained by the Morgan Stanley Group and which may be more favourable were such practices and models used.

      General Index Risk Considerations

      The Index performance is subject to fluctuations

      The Index is a notional, rules-based index comprising the Index Components and the Index Level may decline. The Index methodology described in this Description was developed based on historical data and conditions and there are no assurances that the methodology will generate positive performance in the future. The performance of the Index is dependent on many factors, including developments and trends in the markets for the Index Components. The Index performance can go up as well as down, and can register significant losses, including in some cases that the Index falls to 90% of its Initial Index Level. Any past performance of the Index (actual or simulated) is not an indication of its future performance.

      Risks and rewards of a Financial Product

      Financial Product Investors should ensure that they review the economic terms of the relevant Financial Product and not only the terms of the Index in order to understand the risks and rewards of an investment in such Financial Product.

      The Index is not an investment in the Asset Portfolio Components or the Protection Option

      The Index is calculated as a “notional” index. This means that the Index is calculated in part by reference to the Closing Level of the Asset Portfolio Components and the Protection Option Value. However, there is no requirement for the Index Sponsor to obtain an exposure in relation to any Asset Portfolio Component or the Protection Option in order to calculate the Index.

      A Financial Product Investor will have no rights in respect of any Index Components

      The investment exposure provided by the Index is synthetic. An investment referenced to an Index therefore not make a Financial Product Investor a holder of, or give a Financial Product Investor a direct investment position in, an Index or any Index Component (or any components thereof).

      No liability

      Notwithstanding any other provision within this Description, and subject as provided by any applicable law or regulation, in no event shall the Index Sponsor or the Index Calculation Agent, acting in each case in such capacity, be liable (whether directly or indirectly, in contract, tort or otherwise) for any loss incurred by any person that arises out of or in connection with the Index, including in relation to the performance of the Index Sponsor or the Index Calculation Agent, as applicable, of any part of its respective role under this Description, provided that nothing shall relieve each of the Index Sponsor and the Index Calculation Agent from any liability arising by reason of fraud or acts or omissions constituting any breach of regulation or other applicable law.

      The Index Sponsor may make adjustments to this Description in certain circumstances

      The Index Sponsor may make adjustments to this Description without consulting with Financial Product Investors in circumstances where the Index Sponsor has determined that such change is not material to Financial Product Investors, including if it is of a formal, minor or technical nature. Before making any other adjustment to this Description, the Index Sponsor will give prior notice to Financial Product Investors. Such adjustments could include, but are not limited to: (i) adjusting any relevant Index Component Value, (ii) replacing or removing an Index Component, (iii) postponing the publication of an Index Level or (iv) suspending or cancelling the Index. Any adjustments made to the Index may impact its future performance and result in an adverse return to a Financial Product Investor.

      Discretion

      This Description confers on each of the Index Sponsor and the Index Calculation Agent the right to make determinations, calculations, adjustments and modifications in relation to the Index and related matters, which involve, in certain circumstances, a degree of discretion in order to ensure that the Index can, where reasonably practicable, continue to be calculated and determined notwithstanding the relevant circumstances or, to allow a delay or a cancellation of the Index (including, without limitation, upon the occurrence of certain Adjustment Events, certain dilutive or concentrative events or other market disruption events in relation to Index Components as specified in this Description). Such adjustments may include, without limitation, adjusting the composition of the Index which exposes Financial Product Investors to the risk that any replacement Index Component may perform differently from the original Index Component, which may have an adverse effect on the performance of the Index.

      Each of the Index Sponsor and the Index Calculation Agent will, as far as reasonably practicable, exercise any such discretion with the aim of ensuring that the Index continues to reflect, as closely as possible, the underlying economic interest it is designed to represent. The exercise of these discretions may have a significant effect on the Index and a Financial Product. Financial Product Investors should note that they are exposed to the exercise by the Index Sponsor of such discretions and in exercising such discretions, the Index Sponsor and the Index Calculation Agent have no obligations to consider the interests of any other person including (but not limited to) Financial Product Investors. Each of the Index Sponsor and the Index Calculation Agent, unless otherwise specified, is required to act using reasonable discretion, however, there can be no assurance that the exercise of any such discretion (or the absence of exercise, as the case may be) will not increase or decrease the Index Level and/or alter the volatility of the Index.

      Exposure to the performance of the basket of Index Components

      Even in the case of a positive performance of one or more Index Components, the performance of the basket of Index Components as a whole may be negative if the performance of the other Index Components is negative to a greater extent.

      Political and economic factors

      Index Component Values may be influenced by a number of circumstances, including, but not limited to, political events, general economic conditions, government intervention, changes in balances of payments and trade, domestic and international rates of inflation, international trade restrictions and currency devaluations. Any such circumstance (or a combination of them) may cause unexpected volatility or illiquidity in the relevant markets. The Index may fail to take account of such events and, as a result, investment losses may occur which may in turn have an adverse effect on the performance of a Financial Product.

      With respect to any emerging or developing nation, there is the possibility of nationalisation, expropriation or confiscation, political changes, government regulation, social instability or other developments (including war) which could affect adversely the economies of such nations or Index Component Values that are linked or have an exposure to such nations.

      Market volatility

      The underlying markets for Index Components (including, without limitation and, if applicable, in commodities, metals, financial instruments, interest rates and indices) may be volatile and subject to sudden fluctuations of varying magnitude, any may be influenced by, amongst other things, government trade, fiscal, monetary and exchange control programmes and policies, national and international political and economic events and changes in interest rates. The volatility of such underlying markets may render it difficult or impossible to predict or anticipate fluctuations in the value of Index Components which could result in losses and an adverse effect on the Index.

      Rules-based Index

      The Index is quantitative and rules-based and is not managed actively by the Morgan Stanley Group or any third party. Consequently, the Morgan Stanley Group does not have discretion to change this Description if there are significant changes in the performance of the Index Components that cause the Index to decline significantly or underperform.

      Information about the Index is no guarantee of the performance of the Index – Certain presentations and historical analysis or other statistical analysis materials in respect of the operation and/or potential returns of the Index which may be provided are based on a number of assumptions, historical estimates, simulated analyses and hypothetical circumstances to estimate how the Index may have performed prior to its actual existence. The Index Sponsor may use historical data that is available to calculate the hypothetical level of the Index prior to its inception. If the Index Sponsor determines that such historical data is not available or is incomplete, the Index Sponsor may use alternate sources of data in place of such historical data as well as make certain modifications to the index methodology as it deems necessary to calculate the hypothetical level of the Index prior to its inception. The Index Sponsor provides no assurance or guarantee that the Index will operate or would have operated in the past in a manner consistent with those materials.

      Limited operating history and unanticipated performance

      The Index is a relatively new strategy. Where limited historical performance data exists with respect to the Index Components and the Index itself, any investment in respect of which returns are linked to the performance of the Index or the Index Components may involve a greater risk than an investment linked to returns generated by an investment strategy with a proven track record. While a longer history of actual performance could provide more reliable information on which to assess the validity of the Index and on which to base an investment decision, the fact that the Index and the Index Components are relatively new would not allow this. There can be no guarantee or assurance that the Index or the Index Components will operate in a manner consistent with the data available.

      Reliance on information

      Calculations related to the Index may rely on information obtained from various publicly available sources. The Morgan Stanley Group and the Index Calculation Agent have relied on and will rely on these sources. In addition, the Morgan Stanley Group and the Index Calculation Agent have not verified independently and will not verify independently the information extracted from these sources. Accordingly, Financial Product Investors are subject to the risk that such third party information is inaccurate or incomplete and, in such circumstances, any such inaccuracy or incompleteness will be reflected in the calculation of the Index and may have a material impact on the performance of the Index.

      No disclosure of information

      The Morgan Stanley Group may be in possession at any time of information in relation to Index Components which may not be available to Financial Product Investors. There is no obligation on any member of the Morgan Stanley Group to disclose to Financial Product Investors any such information.

      Conflict of interests

      The Morgan Stanley Group (including the Index Calculation Agent and the Index Sponsor) may from time to time engage in transactions involving the Index Components for their own account and/or for the account of their clients and may act as market-maker for such Index Components. Such activities may not be for the benefit of Financial Product Investors and may have an effect on the value of the Index and, consequently, on the value and performance of any Financial Products. In addition, the Morgan Stanley Group may from time to time act in other capacities such as the issuer of investments or the advisor thereof. Morgan Stanley Group entities also may issue, hold or enter into financial instruments and/or enter into derivative contracts in respect of the Index Components and the use of such instruments and/or derivatives may affect the value of the Index Components. Morgan Stanley Group entities may, but are not obliged to, enter into hedging transactions in respect of the Index Components in order to meet obligations in respect of Financial Products or for any other purpose which may affect the value of such components or of any Financial Products. If they do, Morgan Stanley Group entities will have certain rights pursuant to such hedging transactions and/or in relation to any transactions that have given them exposure to Index Components and will pursue actions and take steps as they deem appropriate to protect their own interests.

      In addition, the unwinding of such hedging transactions may affect the value of such Index Components or instruments which may affect the value of the Index. Morgan Stanley Group entities may make gains and/or losses from such hedging activity. In acting in any of these capacities, subject as provided by any applicable law or regulation, no member of the Morgan Stanley Group is obliged to take into account the interests of any person including (but not limited to) Financial Product Investors.

      Litigation and disputes

      The Index Sponsor, the Index Calculation Agent or any member of the Morgan Stanley Group may be subject to litigation or arbitration proceedings or disputes with other entities. Any such event may adversely affect the ability of the Index Sponsor or the Index Calculation Agent to perform their duties in respect of the Index and, therefore, may adversely affect the Index and, consequently, any Financial Product.

      Morgan Stanley research

      The Morgan Stanley Group may issue research reports on securities or other financial instruments that are, or may become, Index Components. These reports are independent of the obligations of the Index Sponsor and the Index Calculation Agent described in this Description.

      The Index Sponsor’s determinations are final and conclusive

      The Index Calculation Agent is responsible for compiling and calculating the Index pursuant to this Description and has certain discretions relating to the Index. The Index Sponsor retains the discretion to appoint an alternative Index Calculation Agent. The Index Sponsor retains the final discretion as to the manner in which the Index is calculated and constructed. Furthermore, the Index Sponsor has the final authority on the Index and the interpretation and application of this Description. The Index Sponsor makes no representation (implied or otherwise) as to the performance of any Index Component and/or the Index.

      Tax Considerations

      In July 2015, the U.S. Treasury Department and the Inland Revenue Service (“IRS”) released a notice designating certain “basket contracts” and substantially similar transactions as “transactions of interest,” subject to information reporting requirements as “reportable transactions” under Section 6011 of the U.S. Internal Revenue Code of 1986, as amended. The scope of this notice is unclear, and it is therefore possible that the Financial Products could be subject to the notice. In that case, Financial Product Investors would be required to report certain information to the IRS, as set forth in the applicable Treasury regulations regarding “reportable transactions”. If the IRS determines such a transaction is a “transaction of interest” and Financial Product Investors fail to disclose the transaction, such holders could be subject to penalties. Financial Product Investors should consult their tax advisers regarding the potential application of this notice to Financial Products.

      Risk factors

      Risk Factors and Investment Considerations

      Prior to making an investment decision in respect of any Financial Product, prospective investors should consider carefully all of the information set out in this Description, including in this Section 2 (Risk Factors and Investment Considerations). This Section 2 (Risk Factors and Investment Considerations) is intended to describe various risk factors which the Index Sponsor believes represent the principal risks associated with any securities issues, derivative transactions or other financial product the return of which is linked to, or otherwise determined by reference to, the Index (each such issue, transaction or product, a “Financial Product”). Each investor in relation to a Financial Product is referred to as a “Financial Product Investor”. There may be other risks and considerations not set out below that prospective investors should consider that are relevant either to their particular circumstances or more generally, whether arising from market factors or otherwise. In particular, other risks may exist in relation to the Financial Product itself. Each prospective investor should make their own investigations and form their own views as to the appropriateness or otherwise of the Index taking into account their own circumstances.

      Index Specific Risk Considerations

      Costs

      The calculation of the Index Level includes a deduction for certain costs. Such costs are calculated in accordance with the methodology specified in this Description. Any such deduction(s) shall mean that the Index Level is less than would be the case if no costs were deducted.

      FX

      The calculation of the Index Level is made by reference to certain foreign currency exchange rates. Foreign currency exchange rates are highly volatile and determined by and influenced by a number of factors, including supply and demand for currencies in the international foreign exchange markets, economic factors including inflation rates in the countries concerned, interest rate differences between the respective countries, economic forecasts, international political factors, changes in balances of payments and trade, domestic and international rates of inflation, international trade restrictions, currency devaluations, currency convertibility, safety of making financial investments in the currency concerned, speculation and measures taken by governments and central banks. Any such circumstance (or a combination of them) may cause unexpected volatility or illiquidity in the foreign currency markets. This may have an adverse effect on the Index Levels which may in turn have an adverse effect on the performance of any Financial Product.

      Impact of Variable Exposure

      The Strategy which comprises the Index has a variable exposure to the Asset Portfolio Components that is a function of the ratio of the Annualised Volatility Budget and the realised volatility of the relevant Asset Portfolio and the correlation between the Asset Portfolios. As such, the Strategy may have less than 100% exposure to positive returns with high realised volatility and greater than 100% exposure to negative returns with low realised volatility.

      Factors affecting the performance of an Asset Portfolio Component may adversely affect the Index Level

      An Asset Portfolio Component is comprised of a synthetic portfolio of shares, futures or other assets, and as such, the performance of an Asset Portfolio Component is dependent upon the macroeconomic factors relating to the shares, futures or other components that comprise such Asset Portfolio Component, which may include interest and price levels on the capital markets, currency developments, political factors and (in the case of shares) company-specific factors such as earnings position, market position, risk situation, market liquidity for the shares, shareholder structure and dividend policy.

      A change in the composition or discontinuance of Asset Portfolio Component could adversely affect the market value of a Financial Product

      The sponsor of any Asset Portfolio Component may add, delete or substitute the components of such Asset Portfolio Component or make other methodological changes that could change the level of one or more components. The changing of components of any Asset Portfolio Component may affect the level of such Asset Portfolio Component as a newly added component may perform significantly worse or better than the component it replaces, which in turn may affect the Index Level and, therefore, payments made under a Financial Product. The sponsor of any such Asset Portfolio Component may also alter, discontinue or suspend calculation or dissemination of such Asset Portfolio Component.

      Exposure to Asset Portfolio Component Modification, Asset Portfolio Component Cancellation and Asset Portfolio Component Disruption

      The Index Calculation Agent has discretionary authority under this Description to make certain determinations and adjustments following an Asset Portfolio Component Modification (broadly, changes in the methodology of an Asset Portfolio Component), Asset Portfolio Component Cancellation (permanent cancellation of an Asset Portfolio Component) and Asset Portfolio Component Disruption (failure to calculate and publish the level of an Asset Portfolio Component). The Index Calculation Agent may determine that the consequence of any such event is to make adjustments to this Description and any such determination may have a negative adverse effect on the return of a Financial Product.

      Certain risks in relation to the Benchmarks Regulation

      If an Asset Portfolio Component is a "benchmark" under the Benchmarks Regulation and (i) it would be unlawful or contradictory to any applicable licensing requirements for the Index Calculation Agent to determine the level or other value of such Asset Portfolio Component or make any other determination in respect of the Index which it would otherwise be obliged to do so pursuant to this Description, (ii) if the relevant benchmark administrator does not obtain or maintain (as applicable) such authorisation or registration or, if a non-EU entity, "equivalence" is not available and it is not recognised or the transitional provisions do not apply to such non-EU entity or (iii) the relevant benchmark administrator ceases (or will cease) to provide Asset Portfolio Component is (either permanently or indefinitely), then the Index Calculation Agent may determine that a change in the composition or calculation of the Index is required to account for such successor and, if so, the procedures under Section 10.3 (Adjustment procedures, notification and consultation process) will apply.

      Reform of interest rate index and equity, commodity and foreign exchange rate index “benchmarks”

      Asset Portfolio Components which are deemed to be “benchmarks” are the subject of recent national, international and other regulatory guidance and proposals for reform. Some of these reforms are already effective while others are still to be implemented. These reforms may cause such “benchmarks” to perform differently than in the past, or to disappear entirely, or have other consequences which cannot be predicted. Any such consequence could have a material adverse effect on any Financial Product.

      Any of the international, national or other proposals for reform or the general increased regulatory scrutiny of “benchmarks” could increase the costs and risks of administering or otherwise participating in the setting of a “benchmark” and complying with such regulations or requirements. Such factors may have the effect of discouraging market participants from continuing to administer certain “benchmarks”, trigger changes in the rules or methodologies used in certain “benchmarks” or lead to the disappearance of certain “benchmarks”. The disappearance of a “benchmark” could have materially adverse consequences in relation to a Financial Product.

      Exposure to the risk that returns on a Financial Product do not reflect a direct investment in underlying shares or other assets comprising the Underlying MSCI Index

      The return payable on Financial Products that reference an Index which in turn references the Underlying MSCI Index may not be the same as the return a Financial Product Investor would realise if you actually owned the relevant assets comprising the components of the Underlying MSCI Index. Financial Product Investors may receive a lower return on a Financial Product linked to the Underlying MSCI Index (indirectly by referencing the Index) than they would have received if they had invested in the components of the Underlying MSCI Index directly.

      Nature of Underlying MS Indices

      An Underlying MS Index is a notional, rules-based index comprising its component(s) and the level of such Underlying MS Index may go down as well as up, depending on the performance of the components and their effect on the strategy that the Underlying MS Index has been developed to reflect. There can be no assurance as to the future performance of any such Underlying MS Index, and the index level of such Underlying MS Index on any day may not reflect either its past performance or its future performance. The strategy that any such Underlying MS Index has been developed to reflect may not be successful, and other strategies using the components and alternative indices and benchmarks may perform better than such Underlying MS Index. Any past performance of an Underlying MS Index (actual or simulated) is not an indication of its future performance.

      Prospective Financial Product Investors should be familiar with investments in the global financial and commodity markets, financial instruments and indices generally.

      A Financial Product Investor will have no rights in respect of such Underlying MS Index or any components of such Underlying MS Index

      The investment exposure provided by any Underlying MS Index is notional or synthetic. Financial Product Investors will (1) have no legal or beneficial ownership interest in any Underlying MS Index or any component comprising an Underlying MS Index (or components thereof) and therefore have no recourse to any such component; (2) have no right to take delivery of any such component; (3) have no rights generally with respect to any such component (where in relation to voting or otherwise); and (4) have no right to receive dividends, distributions or other payments with respect to any such component.

      An Underlying MS Index may have a limited operating history and may perform in unanticipated ways

      An Underlying MS Index may be a relatively new strategy. Where limited historical performance data exists with respect to the components referenced by such Underlying MS Index and/or the Underlying MS Index itself, any investment in respect of which returns are linked to the performance of such an Underlying MS Index or its components may involve greater risk than an investment linked to returns generated by an investment strategy with a proven track record. While a longer history of actual performance could provide more reliable information on which to assess the validity of a strategy that an Underlying MS Index is intended to reflect and on which to base an investment decision, the fact that such an index and/or the relevant components are relatively new would not allow this. There can be no guarantee or assurance that an Underlying MS Index or its components will operate in a manner consistent with the data available.

      Morgan Stanley or an affiliate of Morgan Stanley’s hedging activity may affect the level of an Underlying MS Index

      By executing products linked to an Underlying MS Index, Morgan Stanley and/or its affiliates will have an exposure to such Underlying MS Index and its components. Morgan Stanley will take risk positions to hedge this exposure in its sole discretion and in a principal capacity. Financial Product Investors will not have any rights in respect of any Morgan Stanley hedge positions, including without limitation, any shares, futures, options, commodities or currencies. Morgan Stanley may execute its hedging activity by trading in the components of any Underlying MS Index at any time and this may have an adverse impact on the performance of an Underlying MS Index. Morgan Stanley’s hedging activity, and hence the size of such impact, may be linked to the amount of new and outstanding products (including any Financial Products) linked to the relevant Underlying MS Index at the relevant time.

      Additionally, Morgan Stanley may generate revenues if it executes its hedging activity at different levels from those used to determine the value of an Underlying MS Index. Such hedging activity could generate significant returns to Morgan Stanley that will not be passed on to Financial Product Investors.

      Morgan Stanley or an affiliate of Morgan Stanley in its capacity as sponsor or calculation agent in respect of an Underlying MS Index has the authority to make determinations that could materially affect such Underlying MS Index and create conflicts of interest

      Morgan Stanley or an affiliate of Morgan Stanley in its capacity as the sponsor of an Underlying MS Index and/or, if applicable, the calculation agent of such an Underlying MS Index does not generally exercise any discretion in relation to the operation of such Underlying MS Index. Morgan Stanley owes no fiduciary duties in respect of such Underlying MS Index. Morgan Stanley may, however, exercise discretion in certain limited situations including, but not limited to, those situations described in any description of the relevant Underlying MS Index. Determinations made by Morgan Stanley as the sponsor and, if applicable, calculation agent of such an Underlying MS Index could adversely affect the level of such Underlying MS Index and the exercise by Morgan Stanley of its discretion could present it with a conflict of interest. Subject as provided in the Index Rules in respect of an Underlying MS Index, in making those determinations, the sponsor and/or the calculation agent, as applicable, of such index will not be required to, and will not, take the interests of any Financial Product Investor into account or consider the effect its determinations will have on the value of any Financial Product. All determinations made by relevant sponsor and/or the calculation agent shall be (including, without limitation, any Financial Products) conclusive for all purposes and will bind all Financial Product Investors. The strategy sponsor and/or the calculation agent in respect of an Underlying MS Index shall not have any liability for such determinations.

      The value of the Protection Option is calculated by reference to an internal model of the Morgan Stanley Group – The value of the Protection Option, which is used as part of the calculation of the Index Level, is calculated by reference to an internal model of the Morgan Stanley Group. Investors using other practices and models may obtain a different value of the Protection Option to those obtained by the Morgan Stanley Group and which may be more favourable were such practices and models used.

      General Index Risk Considerations

      The Index performance is subject to fluctuations

      The Index is a notional, rules-based index comprising the Index Components and the Index Level may decline. The Index methodology described in this Description was developed based on historical data and conditions and there are no assurances that the methodology will generate positive performance in the future. The performance of the Index is dependent on many factors, including developments and trends in the markets for the Index Components. The Index performance can go up as well as down, and can register significant losses, including in some cases that the Index falls to 90% of its Initial Index Level. Any past performance of the Index (actual or simulated) is not an indication of its future performance.

      Risks and rewards of a Financial Product

      Financial Product Investors should ensure that they review the economic terms of the relevant Financial Product and not only the terms of the Index in order to understand the risks and rewards of an investment in such Financial Product.

      The Index is not an investment in the Asset Portfolio Components or the Protection Option

      The Index is calculated as a “notional” index. This means that the Index is calculated in part by reference to the Closing Level of the Asset Portfolio Components and the Protection Option Value. However, there is no requirement for the Index Sponsor to obtain an exposure in relation to any Asset Portfolio Component or the Protection Option in order to calculate the Index.

      A Financial Product Investor will have no rights in respect of any Index Components

      The investment exposure provided by the Index is synthetic. An investment referenced to an Index therefore not make a Financial Product Investor a holder of, or give a Financial Product Investor a direct investment position in, an Index or any Index Component (or any components thereof).

      No liability

      Notwithstanding any other provision within this Description, and subject as provided by any applicable law or regulation, in no event shall the Index Sponsor or the Index Calculation Agent, acting in each case in such capacity, be liable (whether directly or indirectly, in contract, tort or otherwise) for any loss incurred by any person that arises out of or in connection with the Index, including in relation to the performance of the Index Sponsor or the Index Calculation Agent, as applicable, of any part of its respective role under this Description, provided that nothing shall relieve each of the Index Sponsor and the Index Calculation Agent from any liability arising by reason of fraud or acts or omissions constituting any breach of regulation or other applicable law.

      The Index Sponsor may make adjustments to this Description in certain circumstances

      The Index Sponsor may make adjustments to this Description without consulting with Financial Product Investors in circumstances where the Index Sponsor has determined that such change is not material to Financial Product Investors, including if it is of a formal, minor or technical nature. Before making any other adjustment to this Description, the Index Sponsor will give prior notice to Financial Product Investors. Such adjustments could include, but are not limited to: (i) adjusting any relevant Index Component Value, (ii) replacing or removing an Index Component, (iii) postponing the publication of an Index Level or (iv) suspending or cancelling the Index. Any adjustments made to the Index may impact its future performance and result in an adverse return to a Financial Product Investor.

      Discretion

      This Description confers on each of the Index Sponsor and the Index Calculation Agent the right to make determinations, calculations, adjustments and modifications in relation to the Index and related matters, which involve, in certain circumstances, a degree of discretion in order to ensure that the Index can, where reasonably practicable, continue to be calculated and determined notwithstanding the relevant circumstances or, to allow a delay or a cancellation of the Index (including, without limitation, upon the occurrence of certain Adjustment Events, certain dilutive or concentrative events or other market disruption events in relation to Index Components as specified in this Description). Such adjustments may include, without limitation, adjusting the composition of the Index which exposes Financial Product Investors to the risk that any replacement Index Component may perform differently from the original Index Component, which may have an adverse effect on the performance of the Index.

      Each of the Index Sponsor and the Index Calculation Agent will, as far as reasonably practicable, exercise any such discretion with the aim of ensuring that the Index continues to reflect, as closely as possible, the underlying economic interest it is designed to represent. The exercise of these discretions may have a significant effect on the Index and a Financial Product. Financial Product Investors should note that they are exposed to the exercise by the Index Sponsor of such discretions and in exercising such discretions, the Index Sponsor and the Index Calculation Agent have no obligations to consider the interests of any other person including (but not limited to) Financial Product Investors. Each of the Index Sponsor and the Index Calculation Agent, unless otherwise specified, is required to act using reasonable discretion, however, there can be no assurance that the exercise of any such discretion (or the absence of exercise, as the case may be) will not increase or decrease the Index Level and/or alter the volatility of the Index.

      Exposure to the performance of the basket of Index Components

      Even in the case of a positive performance of one or more Index Components, the performance of the basket of Index Components as a whole may be negative if the performance of the other Index Components is negative to a greater extent.

      Political and economic factors

      Index Component Values may be influenced by a number of circumstances, including, but not limited to, political events, general economic conditions, government intervention, changes in balances of payments and trade, domestic and international rates of inflation, international trade restrictions and currency devaluations. Any such circumstance (or a combination of them) may cause unexpected volatility or illiquidity in the relevant markets. The Index may fail to take account of such events and, as a result, investment losses may occur which may in turn have an adverse effect on the performance of a Financial Product.

      With respect to any emerging or developing nation, there is the possibility of nationalisation, expropriation or confiscation, political changes, government regulation, social instability or other developments (including war) which could affect adversely the economies of such nations or Index Component Values that are linked or have an exposure to such nations.

      Market volatility

      The underlying markets for Index Components (including, without limitation and, if applicable, in commodities, metals, financial instruments, interest rates and indices) may be volatile and subject to sudden fluctuations of varying magnitude, any may be influenced by, amongst other things, government trade, fiscal, monetary and exchange control programmes and policies, national and international political and economic events and changes in interest rates. The volatility of such underlying markets may render it difficult or impossible to predict or anticipate fluctuations in the value of Index Components which could result in losses and an adverse effect on the Index.

      Rules-based Index

      The Index is quantitative and rules-based and is not managed actively by the Morgan Stanley Group or any third party. Consequently, the Morgan Stanley Group does not have discretion to change this Description if there are significant changes in the performance of the Index Components that cause the Index to decline significantly or underperform.

      Information about the Index is no guarantee of the performance of the Index – Certain presentations and historical analysis or other statistical analysis materials in respect of the operation and/or potential returns of the Index which may be provided are based on a number of assumptions, historical estimates, simulated analyses and hypothetical circumstances to estimate how the Index may have performed prior to its actual existence. The Index Sponsor may use historical data that is available to calculate the hypothetical level of the Index prior to its inception. If the Index Sponsor determines that such historical data is not available or is incomplete, the Index Sponsor may use alternate sources of data in place of such historical data as well as make certain modifications to the index methodology as it deems necessary to calculate the hypothetical level of the Index prior to its inception. The Index Sponsor provides no assurance or guarantee that the Index will operate or would have operated in the past in a manner consistent with those materials.

      Limited operating history and unanticipated performance

      The Index is a relatively new strategy. Where limited historical performance data exists with respect to the Index Components and the Index itself, any investment in respect of which returns are linked to the performance of the Index or the Index Components may involve a greater risk than an investment linked to returns generated by an investment strategy with a proven track record. While a longer history of actual performance could provide more reliable information on which to assess the validity of the Index and on which to base an investment decision, the fact that the Index and the Index Components are relatively new would not allow this. There can be no guarantee or assurance that the Index or the Index Components will operate in a manner consistent with the data available.

      Reliance on information

      Calculations related to the Index may rely on information obtained from various publicly available sources. The Morgan Stanley Group and the Index Calculation Agent have relied on and will rely on these sources. In addition, the Morgan Stanley Group and the Index Calculation Agent have not verified independently and will not verify independently the information extracted from these sources. Accordingly, Financial Product Investors are subject to the risk that such third party information is inaccurate or incomplete and, in such circumstances, any such inaccuracy or incompleteness will be reflected in the calculation of the Index and may have a material impact on the performance of the Index.

      No disclosure of information

      The Morgan Stanley Group may be in possession at any time of information in relation to Index Components which may not be available to Financial Product Investors. There is no obligation on any member of the Morgan Stanley Group to disclose to Financial Product Investors any such information.

      Conflict of interests

      The Morgan Stanley Group (including the Index Calculation Agent and the Index Sponsor) may from time to time engage in transactions involving the Index Components for their own account and/or for the account of their clients and may act as market-maker for such Index Components. Such activities may not be for the benefit of Financial Product Investors and may have an effect on the value of the Index and, consequently, on the value and performance of any Financial Products. In addition, the Morgan Stanley Group may from time to time act in other capacities such as the issuer of investments or the advisor thereof. Morgan Stanley Group entities also may issue, hold or enter into financial instruments and/or enter into derivative contracts in respect of the Index Components and the use of such instruments and/or derivatives may affect the value of the Index Components. Morgan Stanley Group entities may, but are not obliged to, enter into hedging transactions in respect of the Index Components in order to meet obligations in respect of Financial Products or for any other purpose which may affect the value of such components or of any Financial Products. If they do, Morgan Stanley Group entities will have certain rights pursuant to such hedging transactions and/or in relation to any transactions that have given them exposure to Index Components and will pursue actions and take steps as they deem appropriate to protect their own interests.

      In addition, the unwinding of such hedging transactions may affect the value of such Index Components or instruments which may affect the value of the Index. Morgan Stanley Group entities may make gains and/or losses from such hedging activity. In acting in any of these capacities, subject as provided by any applicable law or regulation, no member of the Morgan Stanley Group is obliged to take into account the interests of any person including (but not limited to) Financial Product Investors.

      Litigation and disputes

      The Index Sponsor, the Index Calculation Agent or any member of the Morgan Stanley Group may be subject to litigation or arbitration proceedings or disputes with other entities. Any such event may adversely affect the ability of the Index Sponsor or the Index Calculation Agent to perform their duties in respect of the Index and, therefore, may adversely affect the Index and, consequently, any Financial Product.

      Morgan Stanley research

      The Morgan Stanley Group may issue research reports on securities or other financial instruments that are, or may become, Index Components. These reports are independent of the obligations of the Index Sponsor and the Index Calculation Agent described in this Description.

      The Index Sponsor’s determinations are final and conclusive

      The Index Calculation Agent is responsible for compiling and calculating the Index pursuant to this Description and has certain discretions relating to the Index. The Index Sponsor retains the discretion to appoint an alternative Index Calculation Agent. The Index Sponsor retains the final discretion as to the manner in which the Index is calculated and constructed. Furthermore, the Index Sponsor has the final authority on the Index and the interpretation and application of this Description. The Index Sponsor makes no representation (implied or otherwise) as to the performance of any Index Component and/or the Index.

      Tax Considerations

      In July 2015, the U.S. Treasury Department and the Inland Revenue Service (“IRS”) released a notice designating certain “basket contracts” and substantially similar transactions as “transactions of interest,” subject to information reporting requirements as “reportable transactions” under Section 6011 of the U.S. Internal Revenue Code of 1986, as amended. The scope of this notice is unclear, and it is therefore possible that the Financial Products could be subject to the notice. In that case, Financial Product Investors would be required to report certain information to the IRS, as set forth in the applicable Treasury regulations regarding “reportable transactions”. If the IRS determines such a transaction is a “transaction of interest” and Financial Product Investors fail to disclose the transaction, such holders could be subject to penalties. Financial Product Investors should consult their tax advisers regarding the potential application of this notice to Financial Products.

      Risk factors

      Risk Factors and Investment Considerations

      Prior to making an investment decision in respect of any Financial Product, prospective investors should consider carefully all of the information set out in this Description, including in this Section 2 (Risk Factors and Investment Considerations). This Section 2 (Risk Factors and Investment Considerations) is intended to describe various risk factors which the Index Sponsor believes represent the principal risks associated with any securities issues, derivative transactions or other financial product the return of which is linked to, or otherwise determined by reference to, the Index (each such issue, transaction or product, a “Financial Product”). Each investor in relation to a Financial Product is referred to as a “Financial Product Investor”. There may be other risks and considerations not set out below that prospective investors should consider that are relevant either to their particular circumstances or more generally, whether arising from market factors or otherwise. In particular, other risks may exist in relation to the Financial Product itself. Each prospective investor should make their own investigations and form their own views as to the appropriateness or otherwise of the Index taking into account their own circumstances.

      Index Specific Risk Considerations

      Costs

      The calculation of the Index Level includes a deduction for certain costs. Such costs are calculated in accordance with the methodology specified in this Description. Any such deduction(s) shall mean that the Index Level is less than would be the case if no costs were deducted.

      FX

      The calculation of the Index Level is made by reference to certain foreign currency exchange rates. Foreign currency exchange rates are highly volatile and determined by and influenced by a number of factors, including supply and demand for currencies in the international foreign exchange markets, economic factors including inflation rates in the countries concerned, interest rate differences between the respective countries, economic forecasts, international political factors, changes in balances of payments and trade, domestic and international rates of inflation, international trade restrictions, currency devaluations, currency convertibility, safety of making financial investments in the currency concerned, speculation and measures taken by governments and central banks. Any such circumstance (or a combination of them) may cause unexpected volatility or illiquidity in the foreign currency markets. This may have an adverse effect on the Index Levels which may in turn have an adverse effect on the performance of any Financial Product.

      Impact of Variable Exposure

      The Strategy which comprises the Index has a variable exposure to the Asset Portfolio Components that is a function of the ratio of the Annualised Volatility Budget and the realised volatility of the relevant Asset Portfolio and the correlation between the Asset Portfolios. As such, the Strategy may have less than 100% exposure to positive returns with high realised volatility and greater than 100% exposure to negative returns with low realised volatility.

      Factors affecting the performance of an Asset Portfolio Component may adversely affect the Index Level

      An Asset Portfolio Component is comprised of a synthetic portfolio of shares, futures or other assets, and as such, the performance of an Asset Portfolio Component is dependent upon the macroeconomic factors relating to the shares, futures or other components that comprise such Asset Portfolio Component, which may include interest and price levels on the capital markets, currency developments, political factors and (in the case of shares) company-specific factors such as earnings position, market position, risk situation, market liquidity for the shares, shareholder structure and dividend policy.

      A change in the composition or discontinuance of Asset Portfolio Component could adversely affect the market value of a Financial Product

      The sponsor of any Asset Portfolio Component may add, delete or substitute the components of such Asset Portfolio Component or make other methodological changes that could change the level of one or more components. The changing of components of any Asset Portfolio Component may affect the level of such Asset Portfolio Component as a newly added component may perform significantly worse or better than the component it replaces, which in turn may affect the Index Level and, therefore, payments made under a Financial Product. The sponsor of any such Asset Portfolio Component may also alter, discontinue or suspend calculation or dissemination of such Asset Portfolio Component.

      Exposure to Asset Portfolio Component Modification, Asset Portfolio Component Cancellation and Asset Portfolio Component Disruption

      The Index Calculation Agent has discretionary authority under this Description to make certain determinations and adjustments following an Asset Portfolio Component Modification (broadly, changes in the methodology of an Asset Portfolio Component), Asset Portfolio Component Cancellation (permanent cancellation of an Asset Portfolio Component) and Asset Portfolio Component Disruption (failure to calculate and publish the level of an Asset Portfolio Component). The Index Calculation Agent may determine that the consequence of any such event is to make adjustments to this Description and any such determination may have a negative adverse effect on the return of a Financial Product.

      Certain risks in relation to the Benchmarks Regulation

      If an Asset Portfolio Component is a "benchmark" under the Benchmarks Regulation and (i) it would be unlawful or contradictory to any applicable licensing requirements for the Index Calculation Agent to determine the level or other value of such Asset Portfolio Component or make any other determination in respect of the Index which it would otherwise be obliged to do so pursuant to this Description, (ii) if the relevant benchmark administrator does not obtain or maintain (as applicable) such authorisation or registration or, if a non-EU entity, "equivalence" is not available and it is not recognised or the transitional provisions do not apply to such non-EU entity or (iii) the relevant benchmark administrator ceases (or will cease) to provide Asset Portfolio Component is (either permanently or indefinitely), then the Index Calculation Agent may determine that a change in the composition or calculation of the Index is required to account for such successor and, if so, the procedures under Section 10.3 (Adjustment procedures, notification and consultation process) will apply.

      Reform of interest rate index and equity, commodity and foreign exchange rate index “benchmarks”

      Asset Portfolio Components which are deemed to be “benchmarks” are the subject of recent national, international and other regulatory guidance and proposals for reform. Some of these reforms are already effective while others are still to be implemented. These reforms may cause such “benchmarks” to perform differently than in the past, or to disappear entirely, or have other consequences which cannot be predicted. Any such consequence could have a material adverse effect on any Financial Product.

      Any of the international, national or other proposals for reform or the general increased regulatory scrutiny of “benchmarks” could increase the costs and risks of administering or otherwise participating in the setting of a “benchmark” and complying with such regulations or requirements. Such factors may have the effect of discouraging market participants from continuing to administer certain “benchmarks”, trigger changes in the rules or methodologies used in certain “benchmarks” or lead to the disappearance of certain “benchmarks”. The disappearance of a “benchmark” could have materially adverse consequences in relation to a Financial Product.

      Exposure to the risk that returns on a Financial Product do not reflect a direct investment in underlying shares or other assets comprising the Underlying MSCI Index

      The return payable on Financial Products that reference an Index which in turn references the Underlying MSCI Index may not be the same as the return a Financial Product Investor would realise if you actually owned the relevant assets comprising the components of the Underlying MSCI Index. Financial Product Investors may receive a lower return on a Financial Product linked to the Underlying MSCI Index (indirectly by referencing the Index) than they would have received if they had invested in the components of the Underlying MSCI Index directly.

      Nature of Underlying MS Indices

      An Underlying MS Index is a notional, rules-based index comprising its component(s) and the level of such Underlying MS Index may go down as well as up, depending on the performance of the components and their effect on the strategy that the Underlying MS Index has been developed to reflect. There can be no assurance as to the future performance of any such Underlying MS Index, and the index level of such Underlying MS Index on any day may not reflect either its past performance or its future performance. The strategy that any such Underlying MS Index has been developed to reflect may not be successful, and other strategies using the components and alternative indices and benchmarks may perform better than such Underlying MS Index. Any past performance of an Underlying MS Index (actual or simulated) is not an indication of its future performance.

      Prospective Financial Product Investors should be familiar with investments in the global financial and commodity markets, financial instruments and indices generally.

      A Financial Product Investor will have no rights in respect of such Underlying MS Index or any components of such Underlying MS Index

      The investment exposure provided by any Underlying MS Index is notional or synthetic. Financial Product Investors will (1) have no legal or beneficial ownership interest in any Underlying MS Index or any component comprising an Underlying MS Index (or components thereof) and therefore have no recourse to any such component; (2) have no right to take delivery of any such component; (3) have no rights generally with respect to any such component (where in relation to voting or otherwise); and (4) have no right to receive dividends, distributions or other payments with respect to any such component.

      An Underlying MS Index may have a limited operating history and may perform in unanticipated ways

      An Underlying MS Index may be a relatively new strategy. Where limited historical performance data exists with respect to the components referenced by such Underlying MS Index and/or the Underlying MS Index itself, any investment in respect of which returns are linked to the performance of such an Underlying MS Index or its components may involve greater risk than an investment linked to returns generated by an investment strategy with a proven track record. While a longer history of actual performance could provide more reliable information on which to assess the validity of a strategy that an Underlying MS Index is intended to reflect and on which to base an investment decision, the fact that such an index and/or the relevant components are relatively new would not allow this. There can be no guarantee or assurance that an Underlying MS Index or its components will operate in a manner consistent with the data available.

      Morgan Stanley or an affiliate of Morgan Stanley’s hedging activity may affect the level of an Underlying MS Index

      By executing products linked to an Underlying MS Index, Morgan Stanley and/or its affiliates will have an exposure to such Underlying MS Index and its components. Morgan Stanley will take risk positions to hedge this exposure in its sole discretion and in a principal capacity. Financial Product Investors will not have any rights in respect of any Morgan Stanley hedge positions, including without limitation, any shares, futures, options, commodities or currencies. Morgan Stanley may execute its hedging activity by trading in the components of any Underlying MS Index at any time and this may have an adverse impact on the performance of an Underlying MS Index. Morgan Stanley’s hedging activity, and hence the size of such impact, may be linked to the amount of new and outstanding products (including any Financial Products) linked to the relevant Underlying MS Index at the relevant time.

      Additionally, Morgan Stanley may generate revenues if it executes its hedging activity at different levels from those used to determine the value of an Underlying MS Index. Such hedging activity could generate significant returns to Morgan Stanley that will not be passed on to Financial Product Investors.

      Morgan Stanley or an affiliate of Morgan Stanley in its capacity as sponsor or calculation agent in respect of an Underlying MS Index has the authority to make determinations that could materially affect such Underlying MS Index and create conflicts of interest

      Morgan Stanley or an affiliate of Morgan Stanley in its capacity as the sponsor of an Underlying MS Index and/or, if applicable, the calculation agent of such an Underlying MS Index does not generally exercise any discretion in relation to the operation of such Underlying MS Index. Morgan Stanley owes no fiduciary duties in respect of such Underlying MS Index. Morgan Stanley may, however, exercise discretion in certain limited situations including, but not limited to, those situations described in any description of the relevant Underlying MS Index. Determinations made by Morgan Stanley as the sponsor and, if applicable, calculation agent of such an Underlying MS Index could adversely affect the level of such Underlying MS Index and the exercise by Morgan Stanley of its discretion could present it with a conflict of interest. Subject as provided in the Index Rules in respect of an Underlying MS Index, in making those determinations, the sponsor and/or the calculation agent, as applicable, of such index will not be required to, and will not, take the interests of any Financial Product Investor into account or consider the effect its determinations will have on the value of any Financial Product. All determinations made by relevant sponsor and/or the calculation agent shall be (including, without limitation, any Financial Products) conclusive for all purposes and will bind all Financial Product Investors. The strategy sponsor and/or the calculation agent in respect of an Underlying MS Index shall not have any liability for such determinations.

      The value of the Protection Option is calculated by reference to an internal model of the Morgan Stanley Group – The value of the Protection Option, which is used as part of the calculation of the Index Level, is calculated by reference to an internal model of the Morgan Stanley Group. Investors using other practices and models may obtain a different value of the Protection Option to those obtained by the Morgan Stanley Group and which may be more favourable were such practices and models used.

      General Index Risk Considerations

      The Index performance is subject to fluctuations

      The Index is a notional, rules-based index comprising the Index Components and the Index Level may decline. The Index methodology described in this Description was developed based on historical data and conditions and there are no assurances that the methodology will generate positive performance in the future. The performance of the Index is dependent on many factors, including developments and trends in the markets for the Index Components. The Index performance can go up as well as down, and can register significant losses, including in some cases that the Index falls to 90% of its Initial Index Level. Any past performance of the Index (actual or simulated) is not an indication of its future performance.

      Risks and rewards of a Financial Product

      Financial Product Investors should ensure that they review the economic terms of the relevant Financial Product and not only the terms of the Index in order to understand the risks and rewards of an investment in such Financial Product.

      The Index is not an investment in the Asset Portfolio Components or the Protection Option

      The Index is calculated as a “notional” index. This means that the Index is calculated in part by reference to the Closing Level of the Asset Portfolio Components and the Protection Option Value. However, there is no requirement for the Index Sponsor to obtain an exposure in relation to any Asset Portfolio Component or the Protection Option in order to calculate the Index.

      A Financial Product Investor will have no rights in respect of any Index Components

      The investment exposure provided by the Index is synthetic. An investment referenced to an Index therefore not make a Financial Product Investor a holder of, or give a Financial Product Investor a direct investment position in, an Index or any Index Component (or any components thereof).

      No liability

      Notwithstanding any other provision within this Description, and subject as provided by any applicable law or regulation, in no event shall the Index Sponsor or the Index Calculation Agent, acting in each case in such capacity, be liable (whether directly or indirectly, in contract, tort or otherwise) for any loss incurred by any person that arises out of or in connection with the Index, including in relation to the performance of the Index Sponsor or the Index Calculation Agent, as applicable, of any part of its respective role under this Description, provided that nothing shall relieve each of the Index Sponsor and the Index Calculation Agent from any liability arising by reason of fraud or acts or omissions constituting any breach of regulation or other applicable law.

      The Index Sponsor may make adjustments to this Description in certain circumstances

      The Index Sponsor may make adjustments to this Description without consulting with Financial Product Investors in circumstances where the Index Sponsor has determined that such change is not material to Financial Product Investors, including if it is of a formal, minor or technical nature. Before making any other adjustment to this Description, the Index Sponsor will give prior notice to Financial Product Investors. Such adjustments could include, but are not limited to: (i) adjusting any relevant Index Component Value, (ii) replacing or removing an Index Component, (iii) postponing the publication of an Index Level or (iv) suspending or cancelling the Index. Any adjustments made to the Index may impact its future performance and result in an adverse return to a Financial Product Investor.

      Discretion

      This Description confers on each of the Index Sponsor and the Index Calculation Agent the right to make determinations, calculations, adjustments and modifications in relation to the Index and related matters, which involve, in certain circumstances, a degree of discretion in order to ensure that the Index can, where reasonably practicable, continue to be calculated and determined notwithstanding the relevant circumstances or, to allow a delay or a cancellation of the Index (including, without limitation, upon the occurrence of certain Adjustment Events, certain dilutive or concentrative events or other market disruption events in relation to Index Components as specified in this Description). Such adjustments may include, without limitation, adjusting the composition of the Index which exposes Financial Product Investors to the risk that any replacement Index Component may perform differently from the original Index Component, which may have an adverse effect on the performance of the Index.

      Each of the Index Sponsor and the Index Calculation Agent will, as far as reasonably practicable, exercise any such discretion with the aim of ensuring that the Index continues to reflect, as closely as possible, the underlying economic interest it is designed to represent. The exercise of these discretions may have a significant effect on the Index and a Financial Product. Financial Product Investors should note that they are exposed to the exercise by the Index Sponsor of such discretions and in exercising such discretions, the Index Sponsor and the Index Calculation Agent have no obligations to consider the interests of any other person including (but not limited to) Financial Product Investors. Each of the Index Sponsor and the Index Calculation Agent, unless otherwise specified, is required to act using reasonable discretion, however, there can be no assurance that the exercise of any such discretion (or the absence of exercise, as the case may be) will not increase or decrease the Index Level and/or alter the volatility of the Index.

      Exposure to the performance of the basket of Index Components

      Even in the case of a positive performance of one or more Index Components, the performance of the basket of Index Components as a whole may be negative if the performance of the other Index Components is negative to a greater extent.

      Political and economic factors

      Index Component Values may be influenced by a number of circumstances, including, but not limited to, political events, general economic conditions, government intervention, changes in balances of payments and trade, domestic and international rates of inflation, international trade restrictions and currency devaluations. Any such circumstance (or a combination of them) may cause unexpected volatility or illiquidity in the relevant markets. The Index may fail to take account of such events and, as a result, investment losses may occur which may in turn have an adverse effect on the performance of a Financial Product.

      With respect to any emerging or developing nation, there is the possibility of nationalisation, expropriation or confiscation, political changes, government regulation, social instability or other developments (including war) which could affect adversely the economies of such nations or Index Component Values that are linked or have an exposure to such nations.

      Market volatility

      The underlying markets for Index Components (including, without limitation and, if applicable, in commodities, metals, financial instruments, interest rates and indices) may be volatile and subject to sudden fluctuations of varying magnitude, any may be influenced by, amongst other things, government trade, fiscal, monetary and exchange control programmes and policies, national and international political and economic events and changes in interest rates. The volatility of such underlying markets may render it difficult or impossible to predict or anticipate fluctuations in the value of Index Components which could result in losses and an adverse effect on the Index.

      Rules-based Index

      The Index is quantitative and rules-based and is not managed actively by the Morgan Stanley Group or any third party. Consequently, the Morgan Stanley Group does not have discretion to change this Description if there are significant changes in the performance of the Index Components that cause the Index to decline significantly or underperform.

      Information about the Index is no guarantee of the performance of the Index – Certain presentations and historical analysis or other statistical analysis materials in respect of the operation and/or potential returns of the Index which may be provided are based on a number of assumptions, historical estimates, simulated analyses and hypothetical circumstances to estimate how the Index may have performed prior to its actual existence. The Index Sponsor may use historical data that is available to calculate the hypothetical level of the Index prior to its inception. If the Index Sponsor determines that such historical data is not available or is incomplete, the Index Sponsor may use alternate sources of data in place of such historical data as well as make certain modifications to the index methodology as it deems necessary to calculate the hypothetical level of the Index prior to its inception. The Index Sponsor provides no assurance or guarantee that the Index will operate or would have operated in the past in a manner consistent with those materials.

      Limited operating history and unanticipated performance

      The Index is a relatively new strategy. Where limited historical performance data exists with respect to the Index Components and the Index itself, any investment in respect of which returns are linked to the performance of the Index or the Index Components may involve a greater risk than an investment linked to returns generated by an investment strategy with a proven track record. While a longer history of actual performance could provide more reliable information on which to assess the validity of the Index and on which to base an investment decision, the fact that the Index and the Index Components are relatively new would not allow this. There can be no guarantee or assurance that the Index or the Index Components will operate in a manner consistent with the data available.

      Reliance on information

      Calculations related to the Index may rely on information obtained from various publicly available sources. The Morgan Stanley Group and the Index Calculation Agent have relied on and will rely on these sources. In addition, the Morgan Stanley Group and the Index Calculation Agent have not verified independently and will not verify independently the information extracted from these sources. Accordingly, Financial Product Investors are subject to the risk that such third party information is inaccurate or incomplete and, in such circumstances, any such inaccuracy or incompleteness will be reflected in the calculation of the Index and may have a material impact on the performance of the Index.

      No disclosure of information

      The Morgan Stanley Group may be in possession at any time of information in relation to Index Components which may not be available to Financial Product Investors. There is no obligation on any member of the Morgan Stanley Group to disclose to Financial Product Investors any such information.

      Conflict of interests

      The Morgan Stanley Group (including the Index Calculation Agent and the Index Sponsor) may from time to time engage in transactions involving the Index Components for their own account and/or for the account of their clients and may act as market-maker for such Index Components. Such activities may not be for the benefit of Financial Product Investors and may have an effect on the value of the Index and, consequently, on the value and performance of any Financial Products. In addition, the Morgan Stanley Group may from time to time act in other capacities such as the issuer of investments or the advisor thereof. Morgan Stanley Group entities also may issue, hold or enter into financial instruments and/or enter into derivative contracts in respect of the Index Components and the use of such instruments and/or derivatives may affect the value of the Index Components. Morgan Stanley Group entities may, but are not obliged to, enter into hedging transactions in respect of the Index Components in order to meet obligations in respect of Financial Products or for any other purpose which may affect the value of such components or of any Financial Products. If they do, Morgan Stanley Group entities will have certain rights pursuant to such hedging transactions and/or in relation to any transactions that have given them exposure to Index Components and will pursue actions and take steps as they deem appropriate to protect their own interests.

      In addition, the unwinding of such hedging transactions may affect the value of such Index Components or instruments which may affect the value of the Index. Morgan Stanley Group entities may make gains and/or losses from such hedging activity. In acting in any of these capacities, subject as provided by any applicable law or regulation, no member of the Morgan Stanley Group is obliged to take into account the interests of any person including (but not limited to) Financial Product Investors.

      Litigation and disputes

      The Index Sponsor, the Index Calculation Agent or any member of the Morgan Stanley Group may be subject to litigation or arbitration proceedings or disputes with other entities. Any such event may adversely affect the ability of the Index Sponsor or the Index Calculation Agent to perform their duties in respect of the Index and, therefore, may adversely affect the Index and, consequently, any Financial Product.

      Morgan Stanley research

      The Morgan Stanley Group may issue research reports on securities or other financial instruments that are, or may become, Index Components. These reports are independent of the obligations of the Index Sponsor and the Index Calculation Agent described in this Description.

      The Index Sponsor’s determinations are final and conclusive

      The Index Calculation Agent is responsible for compiling and calculating the Index pursuant to this Description and has certain discretions relating to the Index. The Index Sponsor retains the discretion to appoint an alternative Index Calculation Agent. The Index Sponsor retains the final discretion as to the manner in which the Index is calculated and constructed. Furthermore, the Index Sponsor has the final authority on the Index and the interpretation and application of this Description. The Index Sponsor makes no representation (implied or otherwise) as to the performance of any Index Component and/or the Index.

      Tax Considerations

      In July 2015, the U.S. Treasury Department and the Inland Revenue Service (“IRS”) released a notice designating certain “basket contracts” and substantially similar transactions as “transactions of interest,” subject to information reporting requirements as “reportable transactions” under Section 6011 of the U.S. Internal Revenue Code of 1986, as amended. The scope of this notice is unclear, and it is therefore possible that the Financial Products could be subject to the notice. In that case, Financial Product Investors would be required to report certain information to the IRS, as set forth in the applicable Treasury regulations regarding “reportable transactions”. If the IRS determines such a transaction is a “transaction of interest” and Financial Product Investors fail to disclose the transaction, such holders could be subject to penalties. Financial Product Investors should consult their tax advisers regarding the potential application of this notice to Financial Products.



      Disclaimer

      Wichtige Informationen und Qualifikationen

      Die hierin enthaltenen Informationen wurden von Vertriebs-, Handels- oder anderen Research-fremden Mitarbeitern eines der folgenden Unternehmen erstellt: Morgan Stanley & Co. LLC, Morgan Stanley & Co. International PLC, Morgan Stanley MUFG Securities Co., Ltd, Morgan Stanley Capital Group Inc. und/oder Morgan Stanley Asia Limited (zusammen mit ihren Tochtergesellschaften, nachfolgend „Morgan Stanley“ genannt), ist aber kein Produkt der Morgan Stanley Research Abteilung. Diese Mitteilung ist eine Marketingmitteilung und kein Research-Bericht, obwohl sie sich auf einen Morgan Stanley Research-Bericht oder die Ansichten eines Morgan Stanley Research-Analysten beziehen kann. Wir kommentieren nicht die Grundlagen der genannten Unternehmen. Sofern nicht anders angegeben, sind alle hier geäußerten Ansichten die Ansichten des Autors und können von denen der Morgan Stanley Research oder denen der anderen Unternehmen abweichen oder mit diesen in Konflikt stehen. Weitere Informationen und wichtige Angaben finden Sie unter http://www.morganstanley.com/disclaimers.

      Morgan Stanley fungiert nicht als kommunaler Berater und die hierin enthaltenen Meinungen oder Ansichten stellen keine Beratung dar, auch nicht im Sinne von § 975 des Dodd- Frank Wall Street Reform and Consumer Protection Act. 

      Dieses Material ist keine Anlageberatung (wie im Rahmen von ERISA oder ähnlichen Konzepten nach geltendem Recht definiert) von Morgan Stanley in Bezug auf einen Personalvorsorgeplan oder eine Person, die als Treuhänder für einen Personalvorsorgeplan handelt. Dieses Material ist nicht als Empfehlung für bestimmte Anlageprodukte, Strategien, Planmerkmale oder andere Zwecke gedacht. Alle in diesem Material verwendeten Beispiele sind generisch, hypothetisch und dienen nur Illustrationszwecken. Solche Mitteilungen sind nicht unparteiisch und werden im Zusammenhang mit der Vermarktung von Produkten und Dienstleistungen bereitgestellt.

      Die hier enthaltenen Informationen dienen ausschließlich Informationszwecken und stellen weder ein Angebot zum Kauf oder Verkauf noch eine Aufforderung zur Abgabe eines Angebots zum Kauf oder Verkauf der genannten Wertpapiere oder Instrumente oder zur Teilnahme an einer bestimmten Handelsstrategie dar. Diese Materialien beruhen auf Informationen, die der Öffentlichkeit allgemein zugänglich sind und aus Quellen stammen, die für zuverlässig gehalten werden. Es wird keine Gewähr für deren Richtigkeit oder Vollständigkeit übernommen und sie können sich ohne vorherige Ankündigung ändern. Morgan Stanley lehnt im eigenen Namen und im Namen seiner verbundenen Unternehmen jegliche Haftung in Bezug auf diese Materialien ab, wie beispielsweise, jedoch nicht ausschließlich, ausdrückliche oder stillschweigende Zusicherungen oder Garantien für Aussagen oder Fehler, die in diesen Materialien enthalten sind oder diesbezügliche Auslassungen. Morgan Stanley und andere seiner verbundenen Unternehmen können Märkte bilden oder sich darauf spezialisieren, nehmen jetzt oder in Zukunft grundsätzliche Positionen (Long oder Short) in vorliegend erwähnten Wertpapieren von Unternehmen oder Handelsstrategien und können auch Investment Banking, Brokerage oder andere Dienstleistungen für diese Unternehmen erbringen oder zu erbringen versuchen und können Transaktionen mit ihnen eingehen. Wir können diese Positionen jederzeit ganz oder teilweise ändern oder liquidieren und wir sind nicht verpflichtet, Sie zu kontaktieren, um eine beabsichtigte oder erfolgte Änderung oder Liquidation bekannt zu geben. Morgan Stanley fungiert als „Prime Broker“ und Kreditgeber für eine Reihe von Hedgefonds. Dadurch kann Morgan Stanley indirekt von steigenden Investitionen in Hedgefonds profitieren.

      Sofern nicht anders angegeben, basiert das vorliegende Material nicht auf der Berücksichtigung individueller Kundengegebenheiten und ist daher nicht als persönliche Empfehlung zu betrachten. Wir weisen die Anleger darauf hin, dass diese Anlagen einem Marktrisiko unterliegen und im Wert schwanken. Die in dieser Mitteilung behandelten Anlagen können je nach ihren spezifischen Anlagezielen und ihrer Finanzlage für Anleger ungeeignet sein. Wenn eine Anlage in einer anderen Währung als der Währung des Anlegers getätigt wird, können sich Wechselkursänderungen nachteilig auf den Wert, den Preis oder die Erträge aus der Anlage auswirken. Die angegebenen Leistungsdaten stellen die historische Wertentwicklung dar. Die historische Wertentwicklung ist kein Indikator für zukünftige Renditen. Es wird weder zugesichert noch garantiert, dass die angegebenen Renditen erreicht werden. In dieser Analyse können bestimmte Annahmen getroffen worden sein, die zu den hier beschriebenen Renditen geführt haben. Transaktionskosten (z.B. Provisionen) werden bei der Berechnung der Renditen nicht berücksichtigt. Änderungen der Annahmen können einen wesentlichen Einfluss auf die angegebenen Renditen haben. Potenzielle Anleger sollten sich bewusst sein, dass bestimmte rechtliche, buchhalterische und steuerliche Beschränkungen, Margenanforderungen, Provisionen und andere Transaktionskosten sowie Änderungen der hier dargelegten Annahmen die wirtschaftlichen Folgen der hier beschriebenen Transaktionen erheblich beeinflussen können. Die hier enthaltenen Informationen und Analysen sind nicht als Steuer-, Rechts- oder Anlageberatung gedacht und könnten für Ihre spezifischen Umstände ungeeignet sein. Aufgrund des Erhalts dieser Mitteilung rät Ihnen Morgan Stanley, keinerlei Maßnahmen auf der Grundlage der hier enthaltenen Informationen, Meinungen oder Ansichten zu ergreifen, und Ihre Entgegennahme dieses Dokuments wird als Akzeptanz dieser Schlussfolgerungen erachtet. Sie sollten die in dieser Mitteilung enthaltenen Informationen, Meinungen oder Ansichten mit Ihren eigenen finanziellen, buchhalterischen und rechtlichen Beratern besprechen. 

      Um weitere Informationen über die historische Wertentwicklung des Finanzinstruments und/oder des Basiswerts (sofern zutreffend) und/oder das Funktionieren des Finanzinstruments unter verschiedenen Marktbedingungen zu erhalten, auf die in Mitteilungen von Mitarbeitern von Morgan Stanley-Unternehmen mit Sitz in Europa, dem Nahen Osten und Afrika („EMEA“) Bezug genommen wird, wenden Sie sich bitte an Ihren EMEA Morgan Stanley-Vertriebsmitarbeiter.

      Diese Materialien dürfen nicht in Ländern verteilt werden, in denen dies rechtswidrig ist. Die in dieser Mitteilung beschriebenen Instrumente und/oder Basiswerte dürfen in einer Reihe von Ländern, in denen dies unzulässig ist, weder vermarktet noch verkauft oder zum Kauf angeboten werden. Diese Veröffentlichung wird in Japan von Morgan Stanley MUFG Securities Co. Ltd. nur an diejenigen Anleger verbreitet, die „Professional Investors“ (tokutei toushika) im Sinne des Financial Instrument Exchange Law of Japan sind und darf nur dann an andere Anlegertypen weitergegeben werden (nur zur Orientierung), wenn Morgan Stanley vorher schriftlich zugestimmt hat. Morgan Stanley MUFG Securities Co. Ltd. ist ein Joint Venture zwischen Morgan Stanley und der Mitsubishi UFJ Financial Group in Japan. Morgan Stanley und Mitsubishi UFJ Financial Group haben ein weiteres Joint Venture in Japan gegründet: Mitsubishi UFJ Morgan Stanley Securities Co. Ltd); in Hongkong durch Morgan Stanley Asia Limited; in Singapur durch Morgan Stanley Asia (Singapore) Pte. und/oder Morgan Stanley Asia (Singapore) Securities Pte. Ltd., die jeweils von der Monetary Authority of Singapore reguliert werden und die Verantwortung für den Inhalt dieser Materialien übernehmen, nur gegenüber Anlegern, die institutionelle Anleger, akkreditierte Anleger oder sachverständige Anleger im Sinne des Securities and Futures Act, Chapter 289 of Singapore sind; in Australien von Morgan Stanley Australia Limited A.B.N. 67 003 734 576, A.F.S.L. Nr. 233742 und/oder Morgan Stanley Australia Securities Limited A.B.N. 55 078 652 276, A.F.S.L. Nr. 233741, die die Verantwortung für ihren Inhalt übernimmt; in Kanada von Morgan Stanley Canada Limited, die den Inhalt dieser Veröffentlichung in Kanada genehmigt hat und sich bereit erklärt hat, die Verantwortung dafür zu übernehmen; in Spanien von Morgan Stanley, S.V., S.A., einem Unternehmen der Morgan Stanley-Gruppe, das von der spanischen Wertpapieraufsichtsbehörde (CNMV) beaufsichtigt wird und erklärt, dass dieses Dokument nach den für die Finanzanalyse geltenden Verhaltensregeln gemäß den spanischen Vorschriften verfasst und verteilt wurde; in den Vereinigten Staaten ist es nur an institutionelle Kunden gerichtet und wird von Morgan Stanley & Co. LLC, die die Verantwortung für ihren Inhalt übernimmt und im Vereinigten Königreich ist sie nur an diejenigen Personen gerichtet, die zugelassene Gegenparteien oder professionelle Kunden sind und Privatkunden (jeweils gemäß der Definition in den Regeln der britischen Financial Conduct Authority) dürfen nicht im Vertrauen drauf handeln und es wird in der Europäischen Union von Morgan Stanley & Co. International plc vertrieben, sofern vorstehend nicht etwas anderes vorgesehen ist. Private britische Investoren sollten sich von ihrem Vertreter der Morgan Stanley & Co. International plc über die betreffenden Investitionen beraten lassen. In Australien ist diese Publikation und ein darauf erfolgender Zugriff nur „Wholesale Clients“ im Sinne des Australian Corporations Act zugedacht. Die hier enthaltenen Warenzeichen und Dienstleistungsmarken sind Eigentum ihrer jeweiligen Inhaber. Außenstehende Datenlieferanten übernehmen keinerlei Gewähr für die Richtigkeit, Vollständigkeit und Aktualität der von ihnen zur Verfügung gestellten Daten und haften nicht für Schäden jeglicher Art, die im Zusammenhang mit diesen Daten stehen.

      HYPOTHETISCHE WERTENTWICKLUNGSERGEBNISSE HABEN VIELE INHÄRENTE EINSCHRÄNKUNGEN, VON DENEN EINIGE IM FOLGENDEN BESCHRIEBEN WERDEN. ES WIRD NICHT ZUGESICHERT, DASS EIN KONTO ÄHNLICHE GEWINNE ODER VERLUSTE WIE DIE GEZEIGTEN ERZIELEN WIRD ODER DIESE ZU ERWARTEN SIND. TATSÄCHLICH GIBT ES HÄUFIG STARKE UNTERSCHIEDE ZWISCHEN DEN HYPOTHETISCHEN WERTENTWICKLUNGSERGEBNISSEN UND DEN TATSÄCHLICHEN ERGEBNISSEN, DIE DURCH EIN BESTIMMTES HANDELSPROGRAMM ERZIELT WERDEN. 
      EINE DER EINSCHRÄNKUNGEN VON HYPOTHETISCHEN PERFORMANCEERGEBNISSEN BESTEHT DARIN, DASS SIE IN DER REGEL IM NACHHINEIN ERSTELLT WERDEN. DARÜBER HINAUS BEINHALTET DER HYPOTHETISCHE HANDEL KEIN FINANZIELLES RISIKO UND EIN HYPOTHETISCHER HANDELSNACHWEIS KANN DIE AUSWIRKUNGEN DES FINANZIELLEN RISIKOS IM TATSÄCHLICHEN HANDEL NICHT VOLLSTÄNDIG BERÜCKSICHTIGEN. BEISPIELSWEISE SIND DIE FÄHIGKEIT, VERLUSTEN STANDZUHALTEN ODER EINE BESTIMMTE HANDELSSTRATEGIE TROTZ HANDELSVERLUSTEN EINZUHALTEN WESENTLICHE PUNKTE, DIE AUCH DAS TATSÄCHLICHE HANDELSERGEBNIS NEGATIV BEEINFLUSSEN KÖNNEN. ES GIBT ZAHLREICHE ANDERE FAKTOREN, DIE SICH AUF DIE MÄRKTE IM ALLGEMEINEN ODER AUF DIE UMSETZUNG EINES BESTIMMTEN HANDELSPROGRAMMS BEZIEHEN UND DIE BEI DER ERSTELLUNG VON HYPOTHETISCHEN WERTENTWICKLUNGSERGEBNISSEN NICHT VOLLSTÄNDIG BERÜCKSICHTIGT WERDEN KÖNNEN UND DIE ALLE DAS TATSÄCHLICHE HANDELSERGEBNIS NEGATIV BEEINFLUSSEN KÖNNEN.

      Alle in dieser Mitteilung vorgenommenen Einschätzungen, Prognosen oder Vorhersagen (auch in tabellarischer Form) sind als zukunftsgerichtete Aussagen zu verstehen. Obwohl Morgan Stanley der Ansicht ist, dass die Erwartungen in eine solche zukunftsgerichtete Aussage angemessen sind, kann es keine Garantie dafür geben, dass sich die zukunftsgerichteten Aussagen als richtig erweisen werden. Solche Schätzungen unterliegen bekannten und unbekannten Risiken, Unsicherheiten und anderen Faktoren, die dazu führen können, dass die tatsächlichen Ergebnisse wesentlich von den Erwartungen abweichen. Diese zukunftsgerichteten Aussagen gelten nur zum Zeitpunkt dieser Mitteilung. Morgan Stanley lehnt ausdrücklich jede Verpflichtung ab, die hier enthaltenen zukunftsgerichteten Aussagen zu aktualisieren oder zu revidieren, um eine Änderung der Erwartungen oder der Umstände, auf denen diese Aussagen beruhen, widerzuspiegeln. Die angegebenen Preise sind die am Ende des angegebenen Datums geltenden Angebotspreise von Morgan Stanley. Es kann sein, dass keine tatsächlichen Transaktionen zu diesen Preisen getätigt worden sind.

      Die hier enthaltenen Warenzeichen und Dienstleistungsmarken sind Eigentum ihrer jeweiligen Inhaber. Weitere Informationen zu den hier beschriebenen Wertpapieren erhalten Sie auf Anfrage. Diese Mitteilung oder Teile derselben dürfen nur nachgedruckt, weiterverkauft oder weitergegeben werden, wenn Morgan Stanley dem vorab schriftlich zugestimmt hat.

      Copyright © durch Morgan Stanley 2022, alle Rechte vorbehalten.

      Important Information and Qualifications

      The information provided herein was prepared by sales, trading, or other non-research personnel of one of the following: Morgan Stanley & Co. LLC, Morgan Stanley & Co. International PLC, Morgan Stanley MUFG Securities Co., Ltd, Morgan Stanley Capital Group Inc. and/or Morgan Stanley Asia Limited (together with their affiliates, hereinafter “Morgan Stanley”), but is not a product of the Morgan Stanley Research Department. This communication is a marketing communication and is not a research report, though it may refer to a Morgan Stanley Research report or the views of a Morgan Stanley research analyst. We are not commenting on the fundamentals of any companies mentioned. Unless indicated, all views expressed herein are the views of the author and may differ from or conflict with those of the Morgan Stanley Research or others in the Firm. For additional information and important disclosures, see http://www.morganstanley.com/disclaimers.

      Morgan Stanley is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice, including within the meaning of Section 975 of the Dodd- Frank Wall Street Reform and Consumer Protection Act.

      This material is not (and should not be construed to be) investment advice (as defined under ERISA or similar concepts under applicable law) from Morgan Stanley with respect to an employee benefit plan or to any person acting as a Fiduciary for an employee benefit plan. This material is not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. Any examples used in this material are generic, hypothetical and for illustration purposes only. Communications such as this are not impartial and are provided in connection with the marketing of products and services.

      The information provided herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities or instruments mentioned or to participate in any particular trading strategy. These materials have been based upon information generally available to the public from sources believed to be reliable. No representation is given with respect to their accuracy or completeness, and they may change without notice. Morgan Stanley on its own behalf and on behalf of its affiliates disclaims any and all liability relating to these materials, including, without limitation, any express or implied representations or warranties for statements or errors contained in, or omissions from, these materials. Morgan Stanley and others associated with it may make markets or specialize in, have or may in the future enter into principal positions (long or short) in and effect transactions in securities of companies or trading strategies mentioned or described herein and may also perform or seek to perform investment banking, brokerage or other services for those companies and may enter into transactions with them. We may at any time modify or liquidate all or a portion of such positions and we are under no obligation to contact you to disclose any such intention to modify or liquidate or any such modification or liquidation. Morgan Stanley acts as “prime broker” and lender for a number of hedge funds. As a result, Morgan Stanley may indirectly benefit from increases in investments in hedge funds.

      Unless stated otherwise, the material contained herein has not been based on a consideration of any individual client circumstances and as such should not be considered to be a personal recommendation. We remind investors that these investments are subject to market risk and will fluctuate in value. The investments discussed in this communication may be unsuitable for investors depending upon their specific investment objectives and financial position. Where an investment is denominated in a currency other than the investor’s currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment. The performance data quoted represents past performance. Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved. Certain assumptions may have been made in this analysis, which have resulted in any returns detailed herein. Transaction costs (such as commissions) are not included in the calculation of returns. Changes to the assumptions may have a material impact on any returns detailed. Potential investors should be aware that certain legal, accounting and tax restrictions, margin requirements, commissions and other transaction costs and changes to the assumptions set forth herein may significantly affect the economic consequences of the transactions discussed herein. The information and analyses contained herein are not intended as tax, legal or investment advice and may not be suitable for your specific circumstances. By submitting this communication to you, Morgan Stanley is not advising you to take any particular action based on the information, opinions or views contained herein, and acceptance of such document will be deemed by you acceptance of these conclusions. You should consult with your own municipal, financial, accounting and legal advisors regarding the information, opinions or views contained in this communication.

      To receive further information in relation to the past performance of the financial instrument and or underlying (as applicable) and/or the functioning of the financial instrument in different market conditions referred to in any communications produced by employees of any Morgan Stanley entity based in Europe, the Middle East, and Africa (“EMEA”), please contact your EMEA Morgan Stanley Sales representative.

      These materials may not be distributed in any jurisdiction where it is unlawful to do so. The instruments and or underlyings described in this communication may not be marketed or sold or be available for offer or sale in a number of jurisdictions where it is unlawful to do so. This publication is disseminated in Japan by Morgan Stanley MUFG Securities Co., Ltd only to those investors who are “Professional Investors” (tokutei toushika) as defined in the Financial Instrument Exchange Law of Japan and may not be redistributed to other types of investors without the prior written consent of Morgan Stanley (For guidance purposes only. Morgan Stanley MUFG Securities Co., Ltd is a joint venture in Japan between Morgan Stanley and Mitsubishi UFJ Financial Group. Morgan Stanley and Mitsubishi UFJ Financial Group have formed another joint venture in Japan called Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd); in Hong Kong by Morgan Stanley Asia Limited; in Singapore by Morgan Stanley Asia (Singapore) Pte. and/or Morgan Stanley Asia (Singapore) Securities Pte. Ltd., each of which is regulated by the Monetary Authority of Singapore and accepts responsibility for its contents of these materials, only to those investors who are institutional investors, accredited investors or expert investors, as defined in the Securities and Futures Act, Chapter 289 of Singapore; in Australia by Morgan Stanley Australia Limited A.B.N. 67 003 734 576, A.F.S.L. No. 233742 and/or Morgan Stanley Australia Securities Limited A.B.N. 55 078 652 276, A.F.S.L. No. 233741, which accept responsibility for its contents; in Canada by Morgan Stanley Canada Limited, which has approved of, and has agreed to take responsibility for, the contents of this publication in Canada; in Spain by Morgan Stanley, S.V., S.A., a Morgan Stanley group company, which is supervised by the Spanish Securities Markets Commission (CNMV) and states that this document has been written and distributed in accordance with the rules of conduct applicable to financial research as established under Spanish regulations; in the United States it is directed only to institutional clients and is distributed by Morgan Stanley & Co. LLC, which accepts responsibility for its contents; and in the United Kingdom it is directed only to those persons who are eligible counterparties or professional clients and must not be acted on or relied upon by retail clients (each as defined in the UK Financial Conduct Authority's rules) and is distributed in the European Union by Morgan Stanley & Co. International plc, except as provided above. Private U.K. investors should obtain the advice of their Morgan Stanley & Co. International plc representative about the investments concerned. In Australia, this publication, and any access to it, is intended only for “wholesale clients” within the meaning of the Australian Corporations Act. The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data.

      HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING STRATEGY IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

      Any estimates, projections or predictions (including in tabular form) given in this communication are intended to be forward-looking statements. Although Morgan Stanley believes that the expectations in such forward-looking statement are reasonable, it can give no assurance that any forward-looking statements will prove to be correct. Such estimates are subject to actual known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those projected. These forward-looking statements speak only as of the date of this communication. Morgan Stanley expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in its expectations or any change in circumstances upon which such statement is based. Prices indicated are Morgan Stanley offer prices at the close of the date indicated. Actual transactions at these prices may not have been effected.

      The trademarks and service marks contained herein are the property of their respective owners. Additional information on securities discussed herein is available on request. This communication or any portion hereof, may not be reprinted, resold or redistributed without the prior written consent of Morgan Stanley.

      Copyright © by Morgan Stanley 2022, all rights reserved.

      Important Information and Qualifications

      The information provided herein was prepared by sales, trading, or other non-research personnel of one of the following: Morgan Stanley & Co. LLC, Morgan Stanley & Co. International PLC, Morgan Stanley MUFG Securities Co., Ltd, Morgan Stanley Capital Group Inc. and/or Morgan Stanley Asia Limited (together with their affiliates, hereinafter “Morgan Stanley”), but is not a product of the Morgan Stanley Research Department. This communication is a marketing communication and is not a research report, though it may refer to a Morgan Stanley Research report or the views of a Morgan Stanley research analyst. We are not commenting on the fundamentals of any companies mentioned. Unless indicated, all views expressed herein are the views of the author and may differ from or conflict with those of the Morgan Stanley Research or others in the Firm. For additional information and important disclosures, see http://www.morganstanley.com/disclaimers.

      Morgan Stanley is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice, including within the meaning of Section 975 of the Dodd- Frank Wall Street Reform and Consumer Protection Act.

      This material is not (and should not be construed to be) investment advice (as defined under ERISA or similar concepts under applicable law) from Morgan Stanley with respect to an employee benefit plan or to any person acting as a Fiduciary for an employee benefit plan. This material is not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. Any examples used in this material are generic, hypothetical and for illustration purposes only. Communications such as this are not impartial and are provided in connection with the marketing of products and services.

      The information provided herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities or instruments mentioned or to participate in any particular trading strategy. These materials have been based upon information generally available to the public from sources believed to be reliable. No representation is given with respect to their accuracy or completeness, and they may change without notice. Morgan Stanley on its own behalf and on behalf of its affiliates disclaims any and all liability relating to these materials, including, without limitation, any express or implied representations or warranties for statements or errors contained in, or omissions from, these materials. Morgan Stanley and others associated with it may make markets or specialize in, have or may in the future enter into principal positions (long or short) in and effect transactions in securities of companies or trading strategies mentioned or described herein and may also perform or seek to perform investment banking, brokerage or other services for those companies and may enter into transactions with them. We may at any time modify or liquidate all or a portion of such positions and we are under no obligation to contact you to disclose any such intention to modify or liquidate or any such modification or liquidation. Morgan Stanley acts as “prime broker” and lender for a number of hedge funds. As a result, Morgan Stanley may indirectly benefit from increases in investments in hedge funds.

      Unless stated otherwise, the material contained herein has not been based on a consideration of any individual client circumstances and as such should not be considered to be a personal recommendation. We remind investors that these investments are subject to market risk and will fluctuate in value. The investments discussed in this communication may be unsuitable for investors depending upon their specific investment objectives and financial position. Where an investment is denominated in a currency other than the investor’s currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment. The performance data quoted represents past performance. Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved. Certain assumptions may have been made in this analysis, which have resulted in any returns detailed herein. Transaction costs (such as commissions) are not included in the calculation of returns. Changes to the assumptions may have a material impact on any returns detailed. Potential investors should be aware that certain legal, accounting and tax restrictions, margin requirements, commissions and other transaction costs and changes to the assumptions set forth herein may significantly affect the economic consequences of the transactions discussed herein. The information and analyses contained herein are not intended as tax, legal or investment advice and may not be suitable for your specific circumstances. By submitting this communication to you, Morgan Stanley is not advising you to take any particular action based on the information, opinions or views contained herein, and acceptance of such document will be deemed by you acceptance of these conclusions. You should consult with your own municipal, financial, accounting and legal advisors regarding the information, opinions or views contained in this communication.

      To receive further information in relation to the past performance of the financial instrument and or underlying (as applicable) and/or the functioning of the financial instrument in different market conditions referred to in any communications produced by employees of any Morgan Stanley entity based in Europe, the Middle East, and Africa (“EMEA”), please contact your EMEA Morgan Stanley Sales representative.

      These materials may not be distributed in any jurisdiction where it is unlawful to do so. The instruments and or underlyings described in this communication may not be marketed or sold or be available for offer or sale in a number of jurisdictions where it is unlawful to do so. This publication is disseminated in Japan by Morgan Stanley MUFG Securities Co., Ltd only to those investors who are “Professional Investors” (tokutei toushika) as defined in the Financial Instrument Exchange Law of Japan and may not be redistributed to other types of investors without the prior written consent of Morgan Stanley (For guidance purposes only. Morgan Stanley MUFG Securities Co., Ltd is a joint venture in Japan between Morgan Stanley and Mitsubishi UFJ Financial Group. Morgan Stanley and Mitsubishi UFJ Financial Group have formed another joint venture in Japan called Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd); in Hong Kong by Morgan Stanley Asia Limited; in Singapore by Morgan Stanley Asia (Singapore) Pte. and/or Morgan Stanley Asia (Singapore) Securities Pte. Ltd., each of which is regulated by the Monetary Authority of Singapore and accepts responsibility for its contents of these materials, only to those investors who are institutional investors, accredited investors or expert investors, as defined in the Securities and Futures Act, Chapter 289 of Singapore; in Australia by Morgan Stanley Australia Limited A.B.N. 67 003 734 576, A.F.S.L. No. 233742 and/or Morgan Stanley Australia Securities Limited A.B.N. 55 078 652 276, A.F.S.L. No. 233741, which accept responsibility for its contents; in Canada by Morgan Stanley Canada Limited, which has approved of, and has agreed to take responsibility for, the contents of this publication in Canada; in Spain by Morgan Stanley, S.V., S.A., a Morgan Stanley group company, which is supervised by the Spanish Securities Markets Commission (CNMV) and states that this document has been written and distributed in accordance with the rules of conduct applicable to financial research as established under Spanish regulations; in the United States it is directed only to institutional clients and is distributed by Morgan Stanley & Co. LLC, which accepts responsibility for its contents; and in the United Kingdom it is directed only to those persons who are eligible counterparties or professional clients and must not be acted on or relied upon by retail clients (each as defined in the UK Financial Conduct Authority's rules) and is distributed in the European Union by Morgan Stanley & Co. International plc, except as provided above. Private U.K. investors should obtain the advice of their Morgan Stanley & Co. International plc representative about the investments concerned. In Australia, this publication, and any access to it, is intended only for “wholesale clients” within the meaning of the Australian Corporations Act. The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data.

      HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING STRATEGY IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

      Any estimates, projections or predictions (including in tabular form) given in this communication are intended to be forward-looking statements. Although Morgan Stanley believes that the expectations in such forward-looking statement are reasonable, it can give no assurance that any forward-looking statements will prove to be correct. Such estimates are subject to actual known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those projected. These forward-looking statements speak only as of the date of this communication. Morgan Stanley expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in its expectations or any change in circumstances upon which such statement is based. Prices indicated are Morgan Stanley offer prices at the close of the date indicated. Actual transactions at these prices may not have been effected.

      The trademarks and service marks contained herein are the property of their respective owners. Additional information on securities discussed herein is available on request. This communication or any portion hereof, may not be reprinted, resold or redistributed without the prior written consent of Morgan Stanley.

      Copyright © by Morgan Stanley 2022, all rights reserved.

      Important Information and Qualifications

      The information provided herein was prepared by sales, trading, or other non-research personnel of one of the following: Morgan Stanley & Co. LLC, Morgan Stanley & Co. International PLC, Morgan Stanley MUFG Securities Co., Ltd, Morgan Stanley Capital Group Inc. and/or Morgan Stanley Asia Limited (together with their affiliates, hereinafter “Morgan Stanley”), but is not a product of the Morgan Stanley Research Department. This communication is a marketing communication and is not a research report, though it may refer to a Morgan Stanley Research report or the views of a Morgan Stanley research analyst. We are not commenting on the fundamentals of any companies mentioned. Unless indicated, all views expressed herein are the views of the author and may differ from or conflict with those of the Morgan Stanley Research or others in the Firm. For additional information and important disclosures, see http://www.morganstanley.com/disclaimers.

      Morgan Stanley is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice, including within the meaning of Section 975 of the Dodd- Frank Wall Street Reform and Consumer Protection Act.

      This material is not (and should not be construed to be) investment advice (as defined under ERISA or similar concepts under applicable law) from Morgan Stanley with respect to an employee benefit plan or to any person acting as a Fiduciary for an employee benefit plan. This material is not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. Any examples used in this material are generic, hypothetical and for illustration purposes only. Communications such as this are not impartial and are provided in connection with the marketing of products and services.

      The information provided herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities or instruments mentioned or to participate in any particular trading strategy. These materials have been based upon information generally available to the public from sources believed to be reliable. No representation is given with respect to their accuracy or completeness, and they may change without notice. Morgan Stanley on its own behalf and on behalf of its affiliates disclaims any and all liability relating to these materials, including, without limitation, any express or implied representations or warranties for statements or errors contained in, or omissions from, these materials. Morgan Stanley and others associated with it may make markets or specialize in, have or may in the future enter into principal positions (long or short) in and effect transactions in securities of companies or trading strategies mentioned or described herein and may also perform or seek to perform investment banking, brokerage or other services for those companies and may enter into transactions with them. We may at any time modify or liquidate all or a portion of such positions and we are under no obligation to contact you to disclose any such intention to modify or liquidate or any such modification or liquidation. Morgan Stanley acts as “prime broker” and lender for a number of hedge funds. As a result, Morgan Stanley may indirectly benefit from increases in investments in hedge funds.

      Unless stated otherwise, the material contained herein has not been based on a consideration of any individual client circumstances and as such should not be considered to be a personal recommendation. We remind investors that these investments are subject to market risk and will fluctuate in value. The investments discussed in this communication may be unsuitable for investors depending upon their specific investment objectives and financial position. Where an investment is denominated in a currency other than the investor’s currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment. The performance data quoted represents past performance. Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved. Certain assumptions may have been made in this analysis, which have resulted in any returns detailed herein. Transaction costs (such as commissions) are not included in the calculation of returns. Changes to the assumptions may have a material impact on any returns detailed. Potential investors should be aware that certain legal, accounting and tax restrictions, margin requirements, commissions and other transaction costs and changes to the assumptions set forth herein may significantly affect the economic consequences of the transactions discussed herein. The information and analyses contained herein are not intended as tax, legal or investment advice and may not be suitable for your specific circumstances. By submitting this communication to you, Morgan Stanley is not advising you to take any particular action based on the information, opinions or views contained herein, and acceptance of such document will be deemed by you acceptance of these conclusions. You should consult with your own municipal, financial, accounting and legal advisors regarding the information, opinions or views contained in this communication.

      To receive further information in relation to the past performance of the financial instrument and or underlying (as applicable) and/or the functioning of the financial instrument in different market conditions referred to in any communications produced by employees of any Morgan Stanley entity based in Europe, the Middle East, and Africa (“EMEA”), please contact your EMEA Morgan Stanley Sales representative.

      These materials may not be distributed in any jurisdiction where it is unlawful to do so. The instruments and or underlyings described in this communication may not be marketed or sold or be available for offer or sale in a number of jurisdictions where it is unlawful to do so. This publication is disseminated in Japan by Morgan Stanley MUFG Securities Co., Ltd only to those investors who are “Professional Investors” (tokutei toushika) as defined in the Financial Instrument Exchange Law of Japan and may not be redistributed to other types of investors without the prior written consent of Morgan Stanley (For guidance purposes only. Morgan Stanley MUFG Securities Co., Ltd is a joint venture in Japan between Morgan Stanley and Mitsubishi UFJ Financial Group. Morgan Stanley and Mitsubishi UFJ Financial Group have formed another joint venture in Japan called Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd); in Hong Kong by Morgan Stanley Asia Limited; in Singapore by Morgan Stanley Asia (Singapore) Pte. and/or Morgan Stanley Asia (Singapore) Securities Pte. Ltd., each of which is regulated by the Monetary Authority of Singapore and accepts responsibility for its contents of these materials, only to those investors who are institutional investors, accredited investors or expert investors, as defined in the Securities and Futures Act, Chapter 289 of Singapore; in Australia by Morgan Stanley Australia Limited A.B.N. 67 003 734 576, A.F.S.L. No. 233742 and/or Morgan Stanley Australia Securities Limited A.B.N. 55 078 652 276, A.F.S.L. No. 233741, which accept responsibility for its contents; in Canada by Morgan Stanley Canada Limited, which has approved of, and has agreed to take responsibility for, the contents of this publication in Canada; in Spain by Morgan Stanley, S.V., S.A., a Morgan Stanley group company, which is supervised by the Spanish Securities Markets Commission (CNMV) and states that this document has been written and distributed in accordance with the rules of conduct applicable to financial research as established under Spanish regulations; in the United States it is directed only to institutional clients and is distributed by Morgan Stanley & Co. LLC, which accepts responsibility for its contents; and in the United Kingdom it is directed only to those persons who are eligible counterparties or professional clients and must not be acted on or relied upon by retail clients (each as defined in the UK Financial Conduct Authority's rules) and is distributed in the European Union by Morgan Stanley & Co. International plc, except as provided above. Private U.K. investors should obtain the advice of their Morgan Stanley & Co. International plc representative about the investments concerned. In Australia, this publication, and any access to it, is intended only for “wholesale clients” within the meaning of the Australian Corporations Act. The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data.

      HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING STRATEGY IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

      Any estimates, projections or predictions (including in tabular form) given in this communication are intended to be forward-looking statements. Although Morgan Stanley believes that the expectations in such forward-looking statement are reasonable, it can give no assurance that any forward-looking statements will prove to be correct. Such estimates are subject to actual known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those projected. These forward-looking statements speak only as of the date of this communication. Morgan Stanley expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in its expectations or any change in circumstances upon which such statement is based. Prices indicated are Morgan Stanley offer prices at the close of the date indicated. Actual transactions at these prices may not have been effected.

      The trademarks and service marks contained herein are the property of their respective owners. Additional information on securities discussed herein is available on request. This communication or any portion hereof, may not be reprinted, resold or redistributed without the prior written consent of Morgan Stanley.

      Copyright © by Morgan Stanley 2022, all rights reserved.