Morgan Stanley Institutional Investment Advisors LLC

Item 7 – Types of Clients                                                  •   Expense ratios/fees and structure

FCG provides investment advisory services under the Investment             •   Sustainability criteria, where applicable
Advisers Act of 1940, as amended (“Advisers Act”), customized
                                                                           This research and monitoring are ongoing. Due diligence of
fiduciary services (within the meaning of Section 3(21) of
                                                                           managers is performed largely via conference calls and to a lesser
ERISA), and investment consulting services to:
                                                                           degree in-person meetings. These evaluations lead directly to our
     •    certain plan sponsors and/or other plan fiduciaries;             formal recommendations regarding actions to be taken.
     •    corporate accounts;
                                                                           Given that our clients consist of municipal and corporate
     •    charitable institutions, foundations, and endowments;            retirement plans, non‐qualified deferred compensation plans,
          and                                                              plan sponsors and/or other plan fiduciaries, corporate accounts,
     •    retirement plans.                                                charitable institutions, foundations, and endowments whose
                                                                           general investment strategy includes a long-term horizon, FCG

primarily analyzes the investment managers in the context of a             •   Interest-Rate Risk: Fluctuations in interest rates may cause
relatively long-term investment relationship.                                  investment prices to fluctuate. For example, when interest
                                                                               rates rise, yields on existing bonds become less attractive,
Set forth below are some of the material risk factors that are often           causing their market values to decline.
associated with the investment strategies and types of
investments relevant to many of FCG’s clients. This is a summary           •   Reinvestment Risk: This is the risk that future proceeds
only. The information included below does not include every                    from investments may have to be reinvested at a potentially
potential risk associated with each investment strategy or                     lower rate of return (i.e., interest rate). This primarily relates
applicable to a particular client account. It is impossible to                 to bonds.
identify all the risks associated with investing and the particular
risks applicable to a client account will depend on the nature of          •   Call Risk: Bonds that are callable carry an additional risk
the account, its investment strategy or strategies, and the types of           because they may be called prior to maturity depending on
securities held. Clients should understand that they could lose                current interest rates thereby increasing the likelihood that
some or all of their investment and should be prepared to bear the             reinvestment risk may be realized.
risk of such potential losses. Past performance is not indicative of
future results. There is no guarantee that any investment will be          •   Credit Risk: The price of a bond depends on the issuer’s
profitable or that investment objectives will be achieved. Clients             credit rating, or perceived ability to pay its debt obligations.
should not rely solely on the descriptions provided below and                  Consequently, increases in an issuer’s credit risk, may
should carefully read all applicable informational materials and               negatively impact the value of a bond investment.
offering or governing documents prior to investing in any product
                                                                           •   Inflation Risk: When inflation is present, a dollar today will
or account. Clients are urged to ask questions regarding risk
                                                                               not buy as much as a dollar next year, because purchasing
factors applicable to a particular strategy or investment product,
                                                                               power is eroding at the rate of inflation.
read all product-specific risk disclosures and determine whether
a particular investment strategy or type of security is suitable for
                                                                           •   Speculation Risk: Certain markets are populated by traders
their account in light of their specific circumstances, investment
                                                                               whose primary interest is in making short-term profits by
objectives and financial situation. While some risk is inherent in
                                                                               speculating whether the price of a security will go up or go
any investment, we believe that it is imperative that risk be
                                                                               down. The speculative actions of these traders may increase
managed appropriately. Investing in securities involves risk of
                                                                               market volatility that could drive down the prices of related
loss and clients should be prepared to bear that risk of loss.
                                                                               securities.

The following is not meant to be a complete description of risks.
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