Data-driven Wealth Management

Gapinski Huggins Group atMorgan Stanley

1301 McKinney Street,Suite 3500, Houston, TX 77010

713-654-7231 / MAIN

877-221-9769 / TOLL-FREE 281-605-5256 / FAX

Gapinski Huggins Group atMorgan Stanley

The Gapinski Huggins Group at Morgan Stanley prides itself onexceptional client service. Taking time to understand client needs, goalsand objectives is at the forefront of its staff’s focus. Their approachutilizes highly data driven processes and probability analysis to help meetthe needs of clients ranging from engineers to senior executives attechnical companies.

The team’s commitment to excellence is paramount. Whether it beconstruction of highly detailed and quantitative retirement plans, orpersonalized data driven portfolios, clients of the Gapinski Huggins Groupcan expect professionalism and service of the highest standards.

3GAPINSKI HUGGINS GROUP

Meet the Professionals

MORGAN STANLEY4

5GAPINSKI HUGGINS GROUP

Michael J. Gapinski, CIMA®

Portfolio Management DirectorSenior Vice PresidentWealth Advisor

Mike is the team’s primary invest-ment strategist. He plans and con-structs proprietary client portfolios,using data and analysis to helpclients increase the likelihood of asuccessful retirement. With his expe-rience working with executives andsenior employees of Fortune 500companies, he also helps clientsdiversify their concentrated equitypositions.

Mike has been a financial advisor andconsultant since 1995, having been atUBS Financial Services before join-ing Morgan Stanley. He is a CertifiedInvestment Management Analyst(CIMA)®, a designation that indicatesknowledge in portfolio performance,risk, traditional and alternativeinvestments, and portfolio theory.

As a National Merit Scholar, heearned a degree in MechanicalEngineering from the University ofHouston’s Honors College, where hegraduated cum laude. He thenearned his CIMA designation fromthe Haas School of Business at theUniversity of California, Berkeley.He also holds series 3, 7, 63 and 65and state insurance licenses.

Mike lives in Kingwood and has beena dedicated coach of youth basketballand soccer. He is President of theRiverwood Middle School ScienceOlympiad Booster Club and is amember of American Mensa.

Thomas H. Huggins, CFP®

Vice PresidentFinancial Advisor

Thom is the team’s financial plan-ner. He works with clients to identifyand articulate their goals and helpsprovide holistic wealth management.This includes insurance analysis,estate planning strategies, educationplanning, and cash management.

Thom is a CERTIFIED FINANCIALPLANNER (CFP)®, a designation thatdemonstrates comprehensive knowl-edge of financial planning. Heentered the financial services indus-try in 2001 while earning his BBA infinance from Texas A&M University.Prior to Morgan Stanley he workedwith Smith Barney’s Cooper Networkand UBS Financial Services, wherehe met Mike. He also holds series 3,7, 31, and 66 and state insurancelicenses.

Nicole M. BonifaceConsulting Group Analyst

Nicole joined the GapinskiHuggins Group in 2005 and helpsmanage its proprietary portfolios.She is an invaluable backbone to theteam’s top notch client service. Shebegan her career at Digital CreditUnion Financial Services inMassachusetts. Nicole graduatedfrom Worcester State University witha degree in business administration.She holds series 7, 31 and 66 licenses.In her spare time, she enjoys spend-ing time with her husband and twodaughters, participating in localcharity runs and studying photogra-phy.

Natanie N. CogburnConsulting Group Analyst

Natanie joined the GapinskiHuggins Group in 2008. She helpsgrow the team’s relationships bymanaging client accounts and facili-tating ongoing portfolio reviews.Her background includes client serv-ice and retail management. Natanieearned a BBA in finance from theUniversity of Houston, where shealso served as president of her sorori-ty. She holds series 7, 63 and 66licenses. In her spare time, Natanieenjoys skydiving and internationaltravel.

Developing Your WealthManagement Strategy

Individuals work hard to build wealth in pursuit of a meaningful life forthemselves and their family. Your achievements reflect substantialeffort, and we will work just as hard on your behalf, committing ourexperience and skills to helping you achieve your unique goals for yourwealth. Moreover, we will support you and your strategy by accessingthe resources and perspective of one of the world’s largest financialfirms.

Before our team offers specific advice,however, we must understand whoyou are and what you want yourwealth to accomplish. Working withyou, we will complete a four-stepprocess:

1 Setting your financial objectives

We will begin our relationship by lis-tening—discussing a range of topicsrelated to your financial needs andinvestment objectives: long-term lifegoals and expectations, possiblemajor purchases, and legacy andcharitable goals, if you have them. Wewill discuss your current financialresources, your time horizon for vari-ous goals, your tolerance for risk —even how your liabilities are struc-tured. If you own a business, we alsomight discuss your current bankingand cash management needs.

2 Developing your wealthmanagement strategy

Based on your input, our advice willlikely help address income and retire-ment planning, asset protection,investment management, strategicborrowing, wealth transfer and busi-ness succession. Of course, your planwill include an asset allocation strate-gy designed to help achieve yourfinancial goals in light of your risk tol-erance and investment time horizon.

3 Implementing your strategy

After we have discussed and refinedyour strategy, the team works closelywith you to bring the elements to life.Should we decide together that out-side money managers are appropriate

for you, we will draw on in-depthresearch and analysis to help youselect from the hundreds of invest-ment management firms available toyou. If you prefer to invest in individ-ual securities, we can help identifyspecific stocks, bonds and other secu-rities that may be suitable for yourportfolio. Whatever approach wedecide on, the team will help you keepyour strategy on track.

4 Reviewing your performance

You will receive a quarterly reviewthat outlines your portfolio’s per-formance, helping you track progresstoward your objectives. Moreover,when your personal situation or mar-ket conditions change significantly,we can suggest appropriate adjust-ments to your portfolio to help itremain aligned with your goals.

MORGAN STANLEY8

Creating Proprietary Portfolios

Our investment principles:

Portfolios are managed individuallyon a fully discretionary basis byFinancial Advisors at Morgan Stanleywho have been qualified by the firmto manage client assets independent-ly based on training, experience andcommitment to service.As your Portfolio Manager, my teamand I can offer you:• Direct access to the investmentprofessionals managing your portfo-lio• Personalized service• A disciplined, multipart invest-ment process• Ongoing client communicationsand reporting• Access to the intellectual capitaland global resources of MorganStanleyAt the Gapinski Huggins Group atMorgan Stanley, we adhere to provenprinciples, analyze key variables, andcreate data-driven models.We have developed a series of threeproprietary portfolios – the CorePortfolio, the Aggressive Portfolio,and the Defensive Portfolio. In dif-ferent combinations, these threechoices provide for the various needsof each client. Each of them is builton the following concepts.

11.. AAsssseett AAllllooccaattiioonn iiss tthhee kkeeyy ddrriivveerrAsset Allocation is a process thatdetermines the mix of asset classesinto which your assets are placed.Research demonstrates that AssetAllocation can account for more than90% of the performance variability ofyour investment portfolio, far greaterthan the impact of security selection,market timing or any other factor.* Itis based on the Nobel prize winningconcepts of Modern Portfolio Theory– the basic concept is that intelligentdiversification can protect youagainst many types of investmentrisk, and that gains in one investmentmay help offset losses in another. Ofcourse, Asset Allocation does notguarantee a profit or protect againsta loss.* Brinson, G.P., Singer, B.D. and G.L.

Beebower, “Determinants ofPortfolio Performance II: AnUpdate”, Financial Analysts Journal,May-June 1991.

22.. PPrroobbaabbiilliissttiicc MMooddeelliinngg uusseess ddaattaa ttooiinnffoorrmm ppoorrttffoolliioo ccoonnssttrruuccttiioonnProbabilistic Modeling is a way ofanalyzing asset classes when prepar-ing a portfolio. It does not analyzeindividual, specific security holdings;instead, it looks at groups of securi-ties that share financial characteris-tics. When we create our proprietaryportfolios, we use Probabilistic

Modeling to determine the mix ofasset classes that we feel is most like-ly to achieve the stated objectives.

33.. TThhee EEffffiicciieenntt FFrroonnttiieerr:: aa ssyysstteemmffoorr aannaallyyzziinngg rriisskkAll investments constitute somecombination of return and risk; gen-erally, the greater the potential forreturn, the greater the risk. Becausethese two phenomena tend to runhand-in-hand (i.e., low return = lowrisk; high return = high risk), achoice must be made as to which ismore appropriate. However, somepercentage of portfolios must pro-duce the greatest probability ofreturn for the lowest risk. Thatgroups exist and a graph line calledthe Efficient Frontier – an efficientportfolio is one in which the risk andthe predicted return are not in lock-step. We seek to create portfolios thatrun along the Efficient Frontier.

44.. MMoonnttee CCaarrlloo SSiimmuullaattiioonn:: aa rreeaall--wwoorrlldd aapppprrooaacchh ttoo uunncceerrttaaiinnttyyThe Monte Carlo Simulation isnamed after the famous casino city inMonaco; it is a mathematical analysisintended to simulate reality to deter-mine the likelihood of a particularresult. The idea is to use computermodeling to project a situation manytimes, and then measure the numberof simulations that result in a partic-MORGAN STANLEY10

ular outcome. It is not designed to“beat the market” – rather, it isintended to increase the probabilityof particular outcome (say, havingyour assets last through your retire-ment). Applied properly, MonteCarlo Simulation allows us to assigna numerical likelihood to any partic-ular investment scenario.At the Gapinski Huggins Group, weuse mathematical tools like these tocreate our proprietary portfolios. Webelieve that using data-driven tech-niques and time-tested investmenttheories and concepts are the key tohelping our clients achieve theirgoals.

MORGAN STANLEY12

RETIREMENTPLANNING

l Lifestyle reviewl Risk reviewl Pension and/or social

security benefitsanalysis

l Retirement accountassessment

l Retirement incomeplan

l Beneficiary reviewl Health care/medicare

planning

Whatever your goals — income,borrowing, risk management,charitable giving, just to name afew — designing a holistic wealthmanagement plan is our toppriority. Drawing on our owninsight, as well as MorganStanley’s global research andexperienced financial specialists,we are able to make informedrecommendations and propose aflexible plan that isuniquely yours.

Your Life and YourLegacy

Comprehensive Wealth Management Services

INVESTMENTSERVICES ANDPERSONALINVESTING

l Asset allocation advicel Investment advisory

programsl Capital markets

servicesl Traditional brokerage

FAMILY NEEDSPLANNING

l Financial planningl Education planningl Special needs child

assessment andplanning

l Planning for support ofaging parents

EXECUTIVECOMPENSATIONMANAGEMENT

l Concentrated stockservices (monetizing,hedging)

l Rule 10b5-1 tradingplans

l Stock option strategiesl Restricted securities

(liquidation and riskmanagementalternatives)

l Assist in estate andfinancial planning(particular to executivecompensationmanagement)*

BUSINESSSUCCESSIONPLANNING

l Business needs reviewl Cash management and

capital needsassessment

l Business valuationl Succession plan

documentsl Succession plan

funding

ACCESS TOBANKINGAND LENDINGSERVICES

ESTATEPLANNING

l Review of wills,durable power ofattorney (POA) forhealth care/POA—living will and trusts

l Giftingl Charitable givingl Asset titlingl Estate tax fundingl Family dynamics/family

meeting

*Team will help assist with both in-house and outside advisors. CRC#410872 5386160 02/2015

A Strong, Steady Force in a Changing IndustryInformation as of June 30, 2012 unless otherwise indicated

800 GLOBAL LOCATIONS

CEO AND SENIOR MANAGEMENTTEAM WITH DEEP WEALTHMANAGEMENT EXPERIENCE

16,934 FINANCIAL ADVISORS

6,800,000 CLIENT ACCOUNTS

$1.7 Trillion CLIENT ASSETS

76+ YEARS OF EXPERIENCE

Investors who choose Morgan Stanleyoften tell us that their reasoning is simple.They choose a Financial Advisor�—�anda firm�—�that mirrors the values propel-ling their own success: a commitmentto perform at the highest level for theirclients, with no shortcuts, compromisesor excuses.

Our Financial Advisors work from an extensive knowledge base built ondiverse skills, experience, training andprofessional interests. They take time tounderstand your most important goals.They have the resources to help you

navigate volatile markets and changinglife circumstances.

Behind every Financial Advisor standsMorgan Stanley. For more than 75 years,our firm has been a leader, innovatorand partner for successful individualsand their families, as well as corpora-tions, foundations and endowments.

Whatever your f inancial goals,and however you prefer to pursuethem, Morgan Stanley offers you moreflexibility, more capability and moreinsight than you are likely to findanywhere else.

A COMMITMENT to

EXCELLENCEOVER THE YEARS, YOU HAVE MADE MANY FINANCIAL DECISIONS.

ONE IN PARTICULAR IS LIKELY TO HAVE A LASTING IMPACTON YOUR WELL BEING AND THAT OF YOUR FAMILY:

THE CHOICE OF A FINANCIAL ADVISOR.

MORGAN STANLEY

Investment insight without limitsMorgan Stanley has a presence in every major asset class and every major market, as well as investment research fromsome of the world’s most respected analysts. Our culturevalues lively debate and an open exchange of ideas as thebasis for distinctive, sophisticated strategies. We translateour insights into your financial success.

INTELLECTUAL CAPITAL, GLOBALPERSPECTIVE. As a client, you haveaccess to the strategic and tacticalviews of some of the world’s mostseasoned and respected investmentprofessionals. The members of ourGlobal Investment Committee developstrategies that guide the management of advisory accounts and help to in-form the decisions of clients acrossMorgan Stanley.

The team is currently supported by analysts at two of the world’s largestfinancial institutions, Morgan Stanleyand Citi, who cover key geographicand economic sectors, as well as 4,100companies. This research is directlyavailable to individual clients, as arethe market insights, research and ana-lytic views of fixed income and equity desks focused on the needs of individual

investors. Your Financial Advisor can bring all of these resources to bear on your portfolio.

S O P H I S T I C AT E D S T R AT E G I E S ,RIGOROUS RISK MANAGEMENT. TheGlobal Investment Committee is anespecially valuable resource to youand your Financial Advisor. The com-mittee creates model portfolios basedon rigorous statistical techniques�—which guide both institutional andindividual investors and  ref lect arange of time horizons, risk profilesand  wealth levels. Also, the com-mittee makes tactical suggestionsbased on an astute analysis of theinvestment landscape. It is all donewith an eye on achieving the mostefficient balance of risk and returnto help maximize the likelihood ofsuccessfully meeting your objectives.

A PREMIER TRADING AND EXECUTION PLATFORM. Our ability to executeyour investment strategy is secondto none. Morgan Stanley is one of theonly wealth management firms witha stand-alone, principal-driven capitalmarkets platform dedicated to the needsof individual investors and FinancialAdvisors. Our 210 capital markets pro-fessionals are an experienced, highlyresponsive and knowledgeable resourceavailable to you.

THE FULL SPECTRUM OF INVESTMENT CHOICES. In our investmentadvisory services programs, you alsohave access to a variety of investment products, including mutual funds and separately managed accounts that are vetted and continuously monitored bya team of manager research analystsand investment professionals�—�one of the largest such groups in the industry.These specialists provide due diligencefor an open-architecture platform thatincludes more than 1,000 investment vehicles and strategies�—�again, a broaderoffering than that of any other investmentfirm. When deciding on which advisoryprogram and vehicles to invest in, you will receive guidance from a FinancialAdvisor focused on your best interests.

plan for long-term goals, be a soundingboard for your investment ideas, andassist you in developing and executinga strategy that is precisely your own. Ifyou choose to utilize one or more of theinvestment advisory programs offered,your Financial Advisor abides by thehighest fiduciary standards, puttingyour interests ahead of the firm’s orhis or her own.

Your Financial Advisor is youradvocate within our firm, an intelligenteditor who selects and aligns themany capabilities of Morgan Stanleyfor you. From investments to bankingand lending services to trusts, yourFinancial Advisor can help meetunique needs on both sides of your

Performance thatseeks to meet

Our goal is to understand which personal and financial measures are most impor-tant to you�—�and then to exceed them.

YOUR PERSONAL FINANCIAL ADVISOR.Among the most important skills of ourFinancial Advisors is the ability to listen:to thoroughly understand your financialneeds and then align the resources to meet them. Your Financial Advisor canhelp you evaluate immediate concerns and

CHOICE / GLOBAL INSIGHT AND OPPORTUNITIES

PERSONAL / PERFORMANCE

A PROFOUND UNDERSTANDING OF WEALTHMANAGEMENT NEEDSBusiness StrategiesCharitable PursuitsEducation FundingEstate PlanningIntegrated PlanningInvestment ManagementLiquidityRetirementRisk Management

MORGAN STANLEY

and Citi

globalcompanies

tracked

4,100

investmentproducts

1,000

capital marketsprofessionals

210

global investmentcommittee members

25

managerresearch

professionals

25

alternativeinvestmentstrategies

100

FinancialAdvisor

1

As of June 30, 2012.

11 / 12 CRC569933

balance sheet. Clients who are partof our Reserved program also enjoyaround-the-clock service and exclusiveseminars devoted to the needs of highnet worth clients.

THE VALUE OF A LEARNING CULTURE.The firm’s Financial Advisors areamong the most experienced andcapable in the industry — many haveadvanced degrees and professionalcert if icat ions and desig nations.Morgan  Stanley makes a sizeableinvest ment in t he t ra ining a ndprofessional development of eachFinancial Advisor. Our continuingeducation programs are designed toequip Financial Advisors with newskills and perspectives. We want

Vast experienceDrawing on many years of experience, Morgan Stanleyunderstands the importance of shaping relationshipsthat reflect client needs, preferences and aspirations. YourFinancial Advisor can help you define and meet your goalsby delivering the right resources to you in the way that is most appropriate for how you invest and what you want to achieve.

Our firm and Financial Advisors have an in-depth understanding of virtuallyall the challenges, goals, preferences, styles and strategies that distinguishwealthy investors. Additionally, as atruly global financial institution, wehave an equally acute knowledge offinancial opportunities and the potentialrisks. This combination positions us todevelop, structure and execute strate-gies for your most important financialneeds, from accumulating wealth toinvesting for income, from creatingretirement reserves to devising a dis-tribution approach that meets yourlifestyle and legacy goals. At the same time, we invest in innovative tools thathelp simplify your financial life on aday-to-day basis.

MANAGING PERSONAL WEALTH TOINSTITUTIONAL STANDARDS. Our vastglobal firm serves many of the world’s most sophisticated and demanding in-stitutional investors. As an individual investor at Morgan Stanley, you’ll benefitfrom the market insight, global pres-ence, risk management resources and analytical rigor that drive our institu-tional relationships. You will experiencethe highest standards of client serviceand responsiveness, enhanced by the personal attention and commitment ofyour Financial Advisor.

THE KNOWLEDGE TO GET IT DONE. Asthe nation’s leading manager of personalwealth, we understand that there are almost as many approaches to managingwealth as there are portfolios to invest.

every client to reap the benefits ofthe culture of excellence of our firm.

Our 16,934 Financial Advisors rep-resent an extensive knowledge basebuilt on diverse skills, experience andprofessional interests. We make thiscollective knowledge available to everyclient by facilitating advisor collabora-tion, encouraging an environment whereFinancial Advisors can share asset al-location approaches, highly focusedstrategies, and specific investment ideasto unusual or particularly sophisticatedclient needs.

Away from the office, our Finan-cial Advisors volunteer their time and leadership skills to thousands of localorganizations. They are at the forefront

of the firm’s commitment to give backgenerously to the communities where our clients live and work.

SPECIAL RESOURCES FOR FAMILIESWITH EXCEPTIONAL REQUIREMENTS.Successful families with substantialassets typically have complex needsand require highly integrated capabili-ties. Family Wealth Advisors focus onthe intricacies of multigenerationalwealth transfer, family ownershipstructures, complex tax reporting,succession planning and family gov-ernance. Our clients work with profes-sionals who have extensive experienceaddressing both the financial issuesand personal dynamics of America’swealthiest families.

Please read important disclosures on the back cover of this brochure

BEHIND YOUR FINANCIAL ADVISOR

SSttaarrtt tthhee CCoonnvveerrssaattiioonn

We are dedicated to providing you with the strategies and resourcesthat can help you achieve your retirement goals in today’s changingfinancial environment. The Retirement Standard is meant to help con-nect all the pieces of your financial life with a comprehensive plan ofaction designed to help put you on a path to the retirement you envi-sion.

MORGAN STANLEY18

© 2015 Morgan Stanley Smith Barney LLC. Member SIPC. 5386160 02/2015

This material does not provide individually tailored investmentadvice. It has been prepared without regard to the individual finan-cial circumstances and objectives of persons who receive it. Thestrategies and or investments discussed in this material may not besuitable for all investors. Morgan Stanley Smith Barney LLC recom-

mends that investors independently evaluate particular investmentsand strategies, and encourages investors to seek the advice of aFinancial Advisor.The appropriateness of a particular investment orstrategy will depend on an investors individual circumstances andobjectives.

CRC 1058903