Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (March 2021)
44 slides from Morgan Stanley's investor presentation, March 2021
Slide 1: Investing With Impact
Investing With Impact Create Positive Economic, Social and Environmental Impact
Slide 2: What Is Investing With Impact?
What Is Investing With Impact? Investments made with the intention to generate a measurable, positive social and/or Investing environmental impact Financial Impact alongside a financial return. Goals Goals with Financial performance driven Positive social and/or Impact by economic environmental fund
Slide 3: Investing with Impact: From Niche to Mainstream
Investing with Impact: From Niche to Mainstream • 1898: Quakers Friends Fiduciary • 2006: UN-supported Principles for • 2015: Department of Labor ruling • 2019: Morgan Stanley launches Corporation founded and adopts Responsible Investment (PRI) is facilitated the ability for employers to Morgan Stan
Slide 4: Morgan Stanley's Decade-Plus Commitment to Sustainability
Morgan Stanley’s Decade-Plus Commitment to Sustainability 2009 2013 2015 2017 2018 2019 2020 Global Sustainable James Gorman Morgan Stanley issues Morgan Stanley Morgan Stanley commits Morgan Stanley Morgan Stanley Finance group formed establishes Institute inaugural green bond appoints first Chief
Slide 5: Morgan Stanley Plastic Waste Resolution
Morgan Stanley Plastic Waste Resolution The Firm has committed to help facilitate the prevention, reduction and removal of 50 million metric tons of plastic waste from rivers, oceans, landscapes and landfills by 2030 40% of all plastic ever produced is for packaging, and only 9% of waste plastic glo
Slide 6: Morgan Stanley's Climate Strategy
Morgan Stanley’s Climate Strategy Integrating Climate Across the Firm’s Businesses, Risk Management and Operations A Four Pillar Climate Strategy TRANSITION TO A LOW- CLIMATE RISK OPERATIONAL RESILIENCE TRANSPARENCY CARBON ECONOMY • First major U.S. • Climate change • Carbon neutrality across • Only
Slide 7: Morgan Stanley's Approach to Firmwide Sustainability
Morgan Stanley’s Approach to Firmwide Sustainability Morgan Stanley aims to be a leader by taking a forward-looking approach to sustainability in the Firm’s risk management, operations and disclosure DISCLOSURE & ENGAGEMENT OPERATIONS & RISK MANAGEMENT Sustainability Reporting Risk Management Morgan
Slide 8: Mainstream Investors Have a Range of Impact Motivations
Mainstream Investors Have a Range of Impact Motivations Individuals Entrepreneurs Religious Institutions Foundations / Non-Profits Women and men across Seeking innovative Incorporating faith-based generations, especially investment options that investing guidelines and Aligning all pools Millennials
Slide 9: Investors Care About Investing with Impact
Investors Care About Investing with Impact Globally, one in three dollars is invested with a focus on sustainability, up 73% since 2014 • Individual Investors: Sustainable Assets by Region (US$ Trillions) (1) 85% of U.S. active $35.0 $30.7 individual investors 2014 95% $15.0 $13.7 $14.1 $22.9 descri
Slide 10: Women Control More Capital and Seek to Create Positive Impact
Women Control More Capital and Seek to Create Positive Impact 84% 56% 89% Women reported Women say they are Women focus at least Women millennials say that 43% of their interested in socially partially on making a they are interested in portfolios were invested responsible investing positive impact
Slide 11: Proof in the Performance
Proof in the Performance Indices that incorporate environmental, social and governance (ESG) factors have generally performed in line with, or better than, conventional indices. For example, a $1 invested in line with the holdings reflected in the sustainable index in 1990 grew to $2,469 versus $2,1
Slide 12: Investing with Impact Offering Delivers an End-to-End Solution
Investing with Impact Offering Delivers an End-to-End Solution PRIVATE PUBLIC MARKETS MARKETS Cash & Cash Sustainable Single-Stock Investing with Impact Alternative Equivalents Capital Markets Opportunities 160+ Third-Party Products Portfolio Solutions: Investments Green, Blue, Morgan Stanley MSIM &
Slide 13: Investing With Impact Is Not a One-Size-Fits-All Approach
Investing With Impact Is Not a One-Size-Fits-All Approach Our framework clarifies the spectrum of approaches that investors of all sizes can pursue MINIMIZE OBJECTIONABLE IMPACT CREATE TARGETED IMPACT ENVIRONMENTAL, RESTRICTION SOCIAL & GOVERNANCE SCREENING (ESG ) INTEGRATION THEMATIC EXPOSURE IMPAC
Slide 14: How ESG Data Informs Investment Decisions
How ESG Data Informs Investment Decisions Environmental, Social and Governance (ESG) data can serve as a tool to better understand risks and opportunities associated with sectors, industries or business activities. Some ESG criteria include, but are not limited to: ENVIRONMENTAL SOCIAL GOVERNANCE CL
Slide 15: Shareholder Engagement and Advocacy
Shareholder Engagement and Advocacy Drive positive environmental and/or social change through active and continuous dialogue with corporates A critical tool employed by managers across the Investing with Impact Framework is shareholder engagement. This tool complements investment approaches across t
Slide 16: Investing with Impact Questions Incorporated into Due Diligence for All Managers
Investing with Impact Questions Incorporated into Due Diligence for All Managers Sample questions from Global Investment Manager Analysis (GIMA)’s initial request for information • What Investing with Impact approaches are Over 300 Asset employed by the manager (Restriction Screening, Managers cover
Slide 17: A Higher Bar for the Investing With Impact Platform
A Higher Bar for the Investing With Impact Platform Morgan Stanley’s Global Investment Manager Analysis team has proprietary process to analyze each manager’s approach to Investing with Impact across 5 key dimensions PERSONNEL & INVESTMENT PROCESS ANALYTICAL BUSINESS PERFORMANCE FIRM & IMPLEMENTATIO
Slide 18: Investing With Impact Thematic Exposure
Investing With Impact Thematic Exposure We help you clarify the range of approaches and how to implement investment solutions based on theme CLIMATE CHANGE AND FAITH-BASED GENDER DIVERSITY RACIAL EQUITY MISSION ALIGN 360° FOSSIL FUEL AWARE INVESTING INVESTING INVESTING INVESTING INVESTING Advance ra
Slide 19: Climate Change and Fossil Fuel Aware Investing
Climate Change and Fossil Fuel Aware Investing Investors interested in proactively seeking opportunities to enhance environmental impact without sacrificing market-rate return have access to a range of climate change and fossil fuel aware investments. UNDERSTANDING THE RISKS & DEVELOPING A CLIMATE A
Slide 20: Faith-Based Investing: Building Value from Values
Faith-Based Investing: Building Value from Values Faith-based investors were among the first to harness capital markets to influence corporate behavior through restriction screening and shareholder engagement. While there is no “one size fits all” approach to faith-based investing, we partner with y
Slide 21: Aligning Jewish Values with Investing and Philanthropy
Aligning Jewish Values with Investing and Philanthropy Morgan Stanley hosted the first-ever Jewish Values Consortiums, a series of events across the United States that brought together leaders in the Jewish, investment and philanthropic communities to discuss what it means to give and invest along t
Slide 22: The Gender Advantage: Integrating Diversity into Financial Decisions
The Gender Advantage: Integrating Diversity into Financial Decisions A growing body of evidence points to better financial performance associated with higher levels of gender diversity, defined as a balance in representation, empowerment and economic opportunity. What Is Gender Diversity? Gender Div
Slide 23: Racial Equity Investing
Racial Equity Investing Opportunities are emerging to advance racial equity and combat systemic racism through investment decisions. Investors play an important role by taking measurable action to promote racial justice through their investments. What Is Racial Equity Investing? Racial equity invest
Slide 24: Mission Align 360°
Mission Align 360° We Help Forward Thinking Organizations Examine all 360° Degrees Of the Organization – Including Human, Financial and Philanthropic Capital for Allocation Towards Their Mission While Generating Positive Environmental and Social Impact. FINANCIAL CAPITAL PHILANTHROPIC CAPITAL HUMAN
Slide 25: Investing with Impact In Action
Investing with Impact In Action Our Portfolio Solutions Are Available and Customizable to a Wide Array of Client Segments PORTFOLIO NAME DESCRIPTION INVESTMENT MINIMUM Custom Portfolios Tailored to match client-specific financial and impact goals $1,000,000 Firm-Discretionary Portfolios Multi-asset
Slide 26: Understanding Your Portfolio's Impact
Understanding Your Portfolio’s Impact Measurement and reporting are central to advancing the positive impact of your investments. You cannot manage what you are not measuring. Problem Investors have long sought the ability to understand the environmental and social impact of their investments; howev
Slide 27: Introducing Morgan Stanley Impact Quotient
Introducing Morgan Stanley Impact Quotient®: A Client-Centric Approach to Impact Reporting Available exclusively to Morgan Stanley clients, Morgan Stanley Impact Quotient ® is a new suite of capabilities designed to help you understand the environmental and social impact of your investments. The pro
Slide 28: Evaluate and Enhance the Alignment of Your Investments
Evaluate and Enhance the Alignment of Your Investments Why Engage With Morgan Stanley Impact Quotient®? Who is Morgan Stanley Impact Quotient® Designed For? Ensures your Financial Advisor #1 understands your unique impact priorities. Individuals seeking to generate positive Families seeking to align
Slide 29: The Future is Bright for Investing with Impact
The Future is Bright for Investing with Impact 86% 2050 85% of individual investors believe Year that the business Companies are improving of U.S active investors are companies with leading opportunities for their competitive position by interested in sustainable sustainability practices may sustain
Slide 30: Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC,
Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. The sole purpose of this material is to inform, and it in no way is intended to be an ofer or solicitation to purchase or sell any security, other investment or ser
Slide 31: turnover and changes to investment process can partially or fully negate a positive Adverse
turnover and changes to investment process can partially or fully negate a positive Adverse Active Alpha ranking. Additionally, highly ranked managers can have difering risk profles that might not be appropriate for all investors. The proprietary Value Score methodology considers an active investmen
Slide 32: (including research, brokerage, asset management, trading, lending and investment banking services) for each other
(including research, brokerage, asset management, trading, lending and investment banking services) for each other and for various clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held in client accounts , and managers in various advis
Slide 33: Mobile check deposits are subject to certain terms and conditions. Checks must be drawn
Mobile check deposits are subject to certain terms and conditions. Checks must be drawn on a U.S. Bank. Send Money with Zelle® is available on the Morgan Stanley Mobile App for iPhone and Android and on Morgan Stanley Online. Enrollment is required and dollar and frequency limits may apply. Domestic
Slide 34: concentration of trading authority when a single advisor is utilized; Absence of information regarding
concentration of trading authority when a single advisor is utilized; Absence of information regarding valuations and pricing; Complex tax structures and delays in tax reporting; Less regulation and higher fees than mutual funds; Risks associated with the operations, personnel, and processes of the
Slide 35: Self-selection bias results when certain manager returns are not included in the index returns
Self-selection bias results when certain manager returns are not included in the index returns and may result in performance being skewed up or down . Because hedge funds are private placements, hedge fund managers are able to decide which fund returns they want to report and are able to opt out of
Slide 36: of such a fund or product to continue to operate, which may materially decrease
of such a fund or product to continue to operate, which may materially decrease the value of an investment therein. - Due to the new and evolving nature of digital currencies and the absence of comprehensive guidance, many signifcant aspects of the tax treatment of digital assets including Bitcoin a
Slide 37: - The regulatory framework of digital assets is evolving, and in some cases uncertain,
- The regulatory framework of digital assets is evolving, and in some cases uncertain, and digital assets themselves may not be governed and protected by applicable securities regulators and securities laws, including, but not limited to, Securities Investor Protection Corporation coverage, or other
Slide 38: Investment Committee (the "GIC"). The Pathway Program Model Portfolios are specifc to the Pathway
Investment Committee (the "GIC"). The Pathway Program Model Portfolios are specifc to the Pathway program (based on program features and parameters, and any other requirements of Morgan Stanley Wealth Management's Consulting Group).The Pathway Program Model Portfolios may therefore difer in some res
Slide 39: not to fund any advance request due to insufcient collateral or for any other
not to fund any advance request due to insufcient collateral or for any other reason except for any portion of a securities based loan that is identifed as a committed facility ; (5) Morgan Stanley reserves the right to increase your collateral maintenance requirements at any time without notice; an
Slide 40: interest that the borrower will be obligated to pay will vary based on the
interest that the borrower will be obligated to pay will vary based on the amount of principal paid down, if any. If a borrower makes just an interest-only payment, and no payment of principal, the total interest payable by the borrower during the interest-only period will be greater than the total
Slide 41: IMPORTANT: The projections or other information provided in the Report regarding the likelihood of
IMPORTANT: The projections or other information provided in the Report regarding the likelihood of various investment outcomes (including any assumed rates of return and income) are hypothetical in nature, do not refect actual investment results, and are not guarantees of future results. Hypothetica
Slide 42: Card Account data please visit http://www.morganstanley.com/wealth/investmentsolutions/pdfs/adv/mssb_privacynotice.pd…
Card Account data please visit http://www.morganstanley.com/wealth/investmentsolutions/pdfs/adv/mssb_privacynotice.pdf. You will get one point for each dollar charged for an eligible purchase on your Platinum Card® from American Express. You will get 4 additional points (for a total of 5 points) for
Slide 43: December). The Amex Beneft in Uber Cash may only be applied within the United
December). The Amex Beneft in Uber Cash may only be applied within the United States. Your monthly Amex Beneft expires at 11:59 PM Hawaii Standard Time on the last day of each month. Unused balance in Uber Cash from your Amex Beneft will not carry over to the following month. Your Amex Beneft will b
Slide 44: (https://www.fdic.gov/deposit/deposits/). The Preferred Savings program is not intended for clients who need to have
(https://www.fdic.gov/deposit/deposits/). The Preferred Savings program is not intended for clients who need to have frequent access to funds and those funds will not be automatically accessed to reduce a debit or margin loan in your brokerage account. Withdrawals from an account in Preferred Saving