Choice Select

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Welcome to Choice Select. As an individual who trades his or her own investment accounts, you’re generally limited to two alternatives:•Youcantradeonlinewithafirmthatofferslittlesupport,noproprietaryresearchand

no one to talk to when issues arise, or•Youcantradewithafull-servicefirmthatprovidesyouwithpersonalizedserviceandadvicewhenyouneedit,butchargesyoustandardbrokeragecommissionsforeverytransaction.

Morgan Stanleyoffersabetterapproachthathasthepotentialtoreduceyourtradingcostswhileprovidingyouwithaflexibleinvestmentplatformandcomprehensivesupport.It’scalledChoiceSelectandit’savailableonlytoMorgan Stanleyclients.Cover Image: © asbl Atomium / Artists Rights Society (ARS), New York / SABAM, Brussels

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6welcome to choice select /p2/  An array of features makes Choice Select a flexible, convenient and cost-effective approach to investing.

the more you trade, the lower the cost /p5/ Choice Select offers a sliding-scale commission schedule that is unique in the financial services industry.

where you stand /p6/ Choice Select can help you monitor your performance while managing trading costs.

independent investing through online trading /p9/ Comprehensive online trading capabilities offer ongoing access to global markets.

resources you need to make informed decisions /p10/ Gain access to a wealth of services, many of which are unavailable at any other firm.

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Welcome to Choice Select

innovation / choice select

Finding the right investment platform to manage your trading can be a challenge for many investors. With its one-of-a-kind sliding-scale pricing structure, the flexibility of online trading and the advantage of your Morgan Stanley Financial Advisor’s knowledge and experience, Choice Select is a unique approach to investing.

innovative pricing. Leverage a sliding-scale commission schedule based on the total annual principal volume1 of eligible equities and options2 trades. The more you trade, the lower your marginal commission rate.comprehensive access. Enjoy Morgan Stanley’s full array of brokerage investment products, including capital markets products.flexibility. Hold all investment products in one account or link eligible accounts for even lower trading costs.

monthly billing. By paying commissions at the end of the month, you’ll have greater control over cash flow.convenient tax reporting. For taxable accounts, the cost basis of each eligible trade is automatically adjusted for Choice Select commissions in the monthly gain / loss report and at year-end in the consolidated tax statement.3

online trading. Place trades online any time with Choice Select on ClientServSM, our online trading platform.no additional program fees. In Choice Select, you are only charged for the trades you execute.

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Innovation

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Cost Effective

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Cumulative Principal Fee$0 – $199,999 2.25%

$200,000 – $299,999 2.15%

$300,000 – $399,999 2.05%

$400,000 – $499,999 1.85%

$500,000 – $599,999 1.75%

$600,000 – $699,999 1.65%

$700,000 – $799,999 1.55%

$800,000 – $899,999 1.45%

$900,000 – $999,999 1.35%

$1,000,000 – $1,999,999 1.00%

$2,000,000 – $3,999,999 0.85%

$4,000,000+ 0.60%

The More You Trade, the Lower the Cost

cost effective / choice select

For example, imagine that during MONTH 1 of your Choice Select year, you trade $350,000 in principal volume (PV). You will have worked through the first three levels of the Choice Se-lect Commission Tiers (to the right). Your blended rate for the month is 2.19%, which is a combination of the first 3 tiers. During MONTH 2, you trade another $200,000 in PV, bring-ing your total PV so far to $550,000 (MONTH 1 + MONTH 2). Your total

Unlike traditional brokerage commissions that are based on the principal volume of each individual trade you make, Choice Select offers a sliding-scale commission schedule that is based on the cumulative principal volume of all equity and option trades you’ve made that year.

MONTH 2

MONTH 1

Choice Select Commissions Tiers

blended rate for the year is now lower at 2.08% (a blend of the first 5 tiers). Moving forward, your trades will be charged a commission of 1.75% until your cumulative PV reaches $600,000, at which point your commission rate decreases even further.

This process continues throughout the course of the year. At the anniversary of the inception of your Choice Select status, your PV is reset to zero and you begin another Choice Select year.

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1 Monthly Billing Monthly billing helps you smooth out your cash flow. Rather than pay com-missions for each trade as it’s executed, you are charged for all eligible Choice Select trades once at the end of each month (in arrears).

2 Convenient Tax Reporting Convenient tax reporting makes it easy for you to identify realized and unreal-ized gains and losses on your monthly account statement and year-end summary. The cost basis of each trade you make is adjusted for Choice Select commissions.

3 Account Grouping Account grouping makes it easier for you to maximize the benefits of Choice Select’s sliding-scale commis-sion schedule. You can group eligible accounts so that all your equity and option trades count toward increased cumulative principal volume traded and reduced commissions.

4 Performance Measurement Reporting

Performance Measurement Reporting provides you with a comprehensive view of all your Choice Select account activity

Where You Stand

simplicity / choice select

Choice Select offers a number of innovative benefits that can help you reduce commissions as you make more trades, manage cash flow and track your progress toward your investment goals.

on a monthly, quarterly and annual basis. Compare your performance with vari-ous market indexes. Understand how much risk you’ve assumed and gain greater insight into individual positions and overall portfolio construction. You can arrange to receive this valuable resource simply by contacting your Financial Advisor.

5 No Trades, No Commissions No trades, no commissions means that in months when there is no activity, you pay nothing.

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Simplicity

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Independence

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Independent Investing Through Online Trading

independence / choice select

C o m p r e h e n s i v e o n l i n e t r a d -ing capabil it ies on ClientSer v, Morgan Stanley ’s online client service Web site, offer you access to global markets 24 hours a day, 7 days a week. An array of thoughtful features al-lows you to easily trade your account, analyze your portfolio, set up alerts

to track the performance of certain securities and review the extensive library of research reports produced by Morgan Stanley and select third-party providers.

In addition, ClientServ provides you with full access to your account information, monthly statements and

performance reports. With Client-Serv, you can manage key account information, enroll in eDelivery for your account correspondence, pay bills with online bill pay, transfer funds and give family members and trusted professionals the ability to view your portfolio.

Over the past decade, advances in digital technology have transformed the way you live, including the way you manage your finances. Choice Select leverages Morgan Stanley’s technology platforms so that you can trade online, manage your accounts and access a range of key resources.

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Resources You Need to Make Informed Decisions

support / choice select

award-winning research offers you the professional opinions of more than 300 analysts following in excess of 2,600 companies. Completely independent from our corporate banking and underwriting businesses, Morgan  Stanley Research offers buy-hold-sell recommendations and in-depth reports on a variety of companies, sectors and trends

that might influence your investment decisions.

proprietary products and ser-vices, available only to Morgan Stanley clients, can help you achieve growth, income or capital preservation objectives while managing risk.

Most important , your Choice Select relationship includes the ser-vices of an experienced Financial

Advisor who is always available to provide you with advice when you need it and assistance in executing trades. Your Financial Advisor can also help you address issues beyond your trading portfolio with strate-gies that encompass both sides of your personal balance sheet and other aspects of your finances.

As a Choice Select client, you gain more than reduced commissions. You gain access to all the products, services, information and advice that have made Morgan Stanley one of the world’s most respected financial services firms.

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Support

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Youknowwhatyouwant,butuntilnow,youmayhavehadtosettleforpricingthatwasn’tcompetitiveoraccountsthatfailedtoprovideyouwithadequatesupport.ChoiceSelectistheonlyprogramofitskindinthefinancialservicesindustry.

Itcanmakeamajordifferenceinyourabilitytomanagetradingcosts,trackyourprogressandmakeinformedinvestmentdecisions.FormoreinformationonChoiceSelect,andtodeterminewhetherthisprogram

maybeappropriateforyou,pleasecontactyourMorgan StanleyFinancialAdvisor.

for more information / choice select

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1 “PrincipalVolume”isthetotalpurchaseorsalepriceofsecurities,netofanyfees.Itisthepriceofthesecuritybeingpurchased,sold,orshorted,multipliedbythequantity.2 Options are not suitable for all investors.3Morgan StanleyanditsFinancialAdvisorsdonotprovidetaxorlegaladvice.Individualsshouldconsulttheirpersonaltaxandlegaladvisorsbeforemakinganytaxorlegalrelateddecisions.

Important DisclosuresChoiceSelectpricingappliesonlytoeligibleequityandoptiontransactions.All other transactions (e.g., fixed income andmutual funds) are subject toloads,mark-ups/mark-downsand/orotherapplicablefees.ChoiceSelectpricing isanalternativewaytopaycommissionsonequity

andoptiontransactionsinabrokerageaccount.AnyinvestmentadviceissolelyincidentaltoMorgan StanleySmith BarneyLLC’sbusinessasabroker-dealer.Clientsdonotpayfor,nordotheyreceive,alevelofadvicedifferentfromthatprovidedtootherfull-servicebrokerageclientswhopayonaper-tradebasis.

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© 2012Morgan StanleySmith BarneyLLC.MemberSIPC. CS109 2012-PS-233 7244554 10/12