Sustainable Investing Interest | Morgan Stanley (2024)

Footnotes:

This material was published in January 2024 and has been preparedfor informational purposes only and is not a solicitation of any offer tobuy or sell any security or other financial instrument or to participatein any trading strategy. This material was not prepared by the MorganStanley Research Department and is not a Research Report as definedunder FINRA regulations. This material does not provide individuallytailored investment advice. It has been prepared without regard tothe individual financial circ*mstances and objectives of persons whor*ceive it.Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. LLC(collectively, “Morgan Stanley”), Members SIPC, recommendthat recipients should determine, in consultation with their owninvestment, legal, tax, regulatory and accounting advisors, theeconomic risks and merits, as well as the legal, tax, regulatory andaccounting characteristics and consequences, of the transactionor strategy referenced in any materials. The appropriateness ofa particular investment or strategy will depend on an investor’sindividual circ*mstances and objectives.Morgan Stanley, its affiliates,employees and Morgan Stanley Financial Advisors do not provide tax,accounting or legal advice. Individuals should consult their tax advisorfor matters involving taxation and tax planning, and their attorney formatters involving legal matters.Certain statements herein may be “forward-looking statements”within the meaning of the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995. These statements are nothistorical facts or statements of current conditions, but instead arebased on management’s current expectations and are subject touncertainty and changes in circ*mstances. These statements arenot guarantees of future results or occurrences and involve certainknown and unknown risks, uncertainties and assumptions that aredifficult to predict and are often beyond our control. Any forward-looking statements made by or on behalf of Morgan Stanley speak only as to the date they are made, and Morgan Stanleydoes not undertake to update forward-looking statements to reflectthe impact of circ*mstances or events that arise after the date theforward-looking statements were made. Because of their narrowfocus, sector investments tend to be more volatile than investmentsthat diversify across many sectors and companies.

Certain portfolios may include investment holdings deemed Environmental, Social and Governance (“ESG”) investments. For reference, environmental ("E") factors can include, but are not limited to, climate change, pollution, waste, and how an issuer protects and/or conserves natural resources. Social ("S") factors can include, but not are not limited to, how an issuer manages its relationships with individuals, such as its employees, shareholders, and customers as well as its community. Governance ("G") factors can include, but are not limited to, how an issuer operates, such as its leadership composition, pay and incentive structures, internal controls, and the rights of equity and debt holders. You should carefully review an investment product's prospectus or other offering documents, disclosures and/or marketing material to learn more about how it incorporates ESG factors into its investment strategy.

ESG investments may also be referred to as sustainable investments, impact aware investments, socially responsible investments or diversity, equity, and inclusion (“DEI”) investments. It is important to understand there are inconsistent ESG definitions and criteria within the industry, as well as multiple ESG ratings providers that provide ESG ratings of the same subject companies and/or securities that vary among the providers. This is due to a current lack of consistent global reporting and auditing standards as well as differences in definitions, methodologies, processes, data sources and subjectivity among ESG rating providers when determining a rating. Certain issuers of investments including, but not limited to, separately managed accounts (SMAs), mutual funds and exchange traded-funds (ETFs) may have differing and inconsistent views concerning ESG criteria where the ESG claims made in offering documents or other literature may overstate ESG impact. Further, socially responsible norms vary by region, and an issuer’s ESG practices or Morgan Stanley’s assessment of an issuer’s ESG practices can change over time.

Portfolios that include investment holdings deemed ESG investments or that employ ESG screening criteria as part of an overall strategy may experience performance that is lower or higher than a portfolio not employing such practices. Portfolios with ESG restrictions and strategies as well as ESG investments may not be able to take advantage of the same opportunities or market trends as portfolios where ESG criteria is not applied. There is no assurance that an ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or a dependable measure of future results. For risks related to a specific fund, please refer to the fund's prospectus or summary prospectus.

Investment managers can have different approaches to ESG and can offer strategies that differ from the strategies offered by other investment managers with respect to the same theme or topic. Additionally, when evaluating investments, an investment manager is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could cause the manager to incorrectly assess an investment’s ESG characteristics or performance. Such data or information may be obtained through voluntary or third-party reporting. Morgan Stanley does not verify that such information and data is accurate and makes no representation or warranty as to its accuracy, timeliness, or completeness when evaluating an issuer. This can cause Morgan Stanley to incorrectly assess an issuer’s business practices with respect to its ESG practices. As a result, it is difficult to compare ESG investment products.

The appropriateness of a particular ESG investment or strategy will depend on an investor’s individual circ*mstances and objectives. Principal value and return of an investment will fluctuate with changes in market conditions.

Past performance is not a guarantee or a dependable measure of futureresults. For risks related to a specific fund, please refer to the fund’sprospectus or summary prospectus.

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