Download Our Portfolio Management Portfolios

Our Portfolio Management Portfolios
Growth and Income Portfolio (Core Portfolio)
This portfolio is managed to be the core of a client’s overall portfolio. The objective of the portfolio is to
achieve reasonable rates of return, through both capital appreciation and income, with less volatility than the
S&P 500. For our equity exposure we invest in individual stocks with a bias towards companies that have a
history of dividend growth. Our research comes from Morgan Stanley, Citigroup, S&P, Morningstar, Value
Line, and Dorsey Wright along with our own independent research. For non-equity exposure we utilize third
party management through the use of mutual funds, ETF’s, ETN’s, and UIT’s. We will also hedge our risk,
when we deem necessary, by using non-leveraged inverse ETF’s or volatility ETF’s.
Moderate Tactical Portfolio
We manage this portfolio using an asset allocation/sector allocation approach. We utilize third party managers
through the use of mutual funds, ETF’s, ETN’s, CEF’s, and UIT’s. We maintain a moderate to moderate
aggressive risk profile with the portfolio. Our allocations are based on Morgan Stanley’s GIC and on
independent research.
Price Potential Portfolio
This portfolio is managed aggressively and emphasizes year-ahead price performance. Value Line research is
used exclusively in this portfolio and it is updated on a weekly basis. Typically the portfolio holds twenty
positions. These positions consist of companies that generally have above-average records for earnings growth.
Few of these stocks pay a dividend and most pay no dividend at all. Stocks in the portfolio can have Beta’s
considerably higher than 1, which indicates that they will likely increase the risk/reward profile of the portfolio.
To enter the portfolio a stock must have a Value Line Timeliness rank of 1 and a Financial Strength rating of at
least B+. A stock whose Timeliness rank falls to 3 or lower is automatically dropped.
Dividend Yield Portfolio
This all equity portfolio focuses on stocks with above-average dividend yields. It also exclusively uses Value
Line research. Stock selected for the portfolio must have a yield of at 1% above the median of all dividendpaying stocks tracked in The Value Line Investment Survey, a Timeliness rank of at least 3, and a Financial
Strength rating of at least B+ at the time of purchase. Any stock whose Timeliness rank falls below 4 is
automatically replaced. Despite the focus on dividend yield and current income, stocks are typically selected
from a broad range of industries, providing a meaningful degree of diversification. The portfolio’s risk profile
will likely be less than the broader market, given the unusual concentration of low-Beta stocks.
Covered Call Portfolio
This portfolio uses a buy-write stock investment strategy. When a stock is purchased for the portfolio call
options are immediately sold on the entire position. The sale of the options against the position, produce
income in the range of 6% to 9%. This is the premium range we are seeking when we take a position. The
options we are selling (writing) are out of the money and expire in four to six months. The option and
underlying holdings may not necessarily be held until option expiration. The portfolio produces a high level of
income and short term capital gains. We utilize research from both Morgan Stanley and Dorsey Wright to
determine which stocks we use in this portfolio. The minimum investment in this portfolio is $500,000.
Commodity REIT MLP Portfolio
This portfolio is a three sector portfolio balanced equally between publicly traded REIT’s, publicly traded
energy MLP’s, and commodities. We use the Morgan Stanley top ten REIT ideas and top ten MLP ideas as a
basis for selection in the REIT and MLP sectors. For commodity exposure we use mutual funds, ETF’s or
ETN’s. In the commodity space we are seeking exposure to actual commodity prices. In addition to Morgan
Stanley research we use our independent research along with our third party research providers.
The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Wealth Management or its
affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a
solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
This material is intended only for clients and prospective clients of the Portfolio Management program. It has been prepared solely for
informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial
instrument, or to participate in any trading strategy.
The individuals mentioned as the Portfolio Management Team are Financial Advisors with Morgan Stanley participating in the Morgan
Stanley Portfolio Management program. The Portfolio Management program is an investment advisory program in which the client’s
Financial Advisor invests the client’s assets on a discretionary basis in a range of securities. The Portfolio Management program is
described in the applicable Morgan Stanley ADV Part 2, available at www.morgan stanley.com/ADV or from your Financial Advisor.
Past performance of any security is not a guarantee of future performance. There is no guarantee that this investment strategy will work
under all market conditions.
Holdings are subject to change daily, so any securities discussed in this profile may or may not be included in your account if you invest in
this investment strategy. Do not assume that any holdings mentioned were, or will be, profitable.
The performance, holdings, sector weightings, portfolio traits and other data for an actual account may differ from that in this material due
to various factors including the size of an account, cash flows within an account, and restrictions on an account.
Top holdings, sector allocation, portfolio statics and credit quality are based on the recommended portfolio for new investors as of the date
specified. Holdings lists indicate the largest security holdings by allocation weight as of the specified date. Other data in this material is
believed to be accurate as of the date this material was prepared unless stated otherwise. Data in this material may be calculated by
Morgan Stanley or by third party providers licensed by the Financial Advisors or Morgan Stanley.
Material in this presentation has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy,
completeness or timeliness. Third party data providers make no warranties or representations relating to the accuracy, completeness or
timeliness of the data they provide and are not liable for any damages relating to this data.
Morgan Stanley Wealth Management has no obligation to notify you when information in this presentation changes.