Respect for Traditional Financial Methods CautiouslyEnhanced Through Innovation

The Piedmont Group atMorgan Stanley

200 CRESCENT COURT SUITE 900DALLAS, TX 75201

214-720-5009 / MAIN

800-527-5814 / TOLL-FREE 214-855-7909 / FAX

http://www.morganstanleyfa.com/thepiedmontgroup

The Piedmont Group atMorgan Stanley

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> Clients have families, and goals not just account numbers> Communication should be proactive not reactive> A goal without a plan is just a wish> Informed clients earn better returns> Expenses erode returns and should be kept to a minimum> When a client calls someone they know should answer> You are never too experienced to learn something new

3THE PIEDMONT GROUP

Meet the Professionals

We believe that working as a team helps to provide you with accessto the most appropriate solutions, and helps to ensure that you bene-fit from the highest levels of service. While we bring complementaryskills and perspectives to our clients, we also share a commitment toresponding to your needs promptly, professionally and thoroughly.Our goal is to earn your confidence not only through the quality ofsolutions we provide to you, but also the excellence with which wedeliver them.

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5THE PIEDMONT GROUP

Paul D. BenderSenior Portfolio ManagerSenior Vice PresidentWealth Advisor

Paul utilizes his 25 years of experi-ence in the financial services indus-try as the lead portfolio manager forThe Piedmont Group. After graduat-ing from the University of Texas atAustin he continued his educationand later obtained the PortfolioManager designation throughMorgan Stanley* in conjunction withColumbia University. The PortfolioManager designation is awarded onlyto experienced advisors with a disci-plined investment approach and ahistory of ethical excellence. Prior toworking in the financial servicesindustry, Paul was the Director ofCorporate Planning for a fortune 500company and a Certified PublicAccountant. He has been married tohis wife Gina for 26 years and theyhave two sons Jacob and Matthew.

John J. D'Annunzio, CFP®

Portfolio ManagerFinancial Advisor

John’s knowledge in financialplanning – retirement, SocialSecurity, education, and asset alloca-tion – complements Paul’s experi-ence to ensure that our group pro-vides comprehensive financial plan-ning to their clients. He believes thatcreating and monitoring a writtenfinancial plan gives clients a sense ofownership and clarity that theyenjoy. After graduating Cum Laudewith a Bachelors specializing inFinance, John was a FinancialAnalyst for a major financial institu-tion until an opportunity as aFinancial Advisor presented itself.Helping people make the right choic-es so that they can be financiallyindependent later in life has alwaysbeen a passion of John’s, and was oneof the reasons he always pursued acareer as a Financial Advisor.

Tom D. KingsleyVice President

Since joining the financial servicesindustry almost 30 years ago, TomKingsley has worked to develop anddeliver customized planning andwealth management strategies tohigh net worth clients. These strate-gies have successfully helped to max-imize clients’ estate planning andinsurance planning efficiency andsave them millions of dollars in taxes.Tom’s experience in the insuranceplanning industry has made him amuch sought-after speaker on estateplanning topics. As a result, Tom hasaddressed many industry audiences,including the National Association ofCertified Financial Planners, MBAclasses at several universities, andnon-profit groups. Tom holds aBachelor of Business Administrationfrom the University of Texas inArlington. He is a native Texan andresides with his wife and three chil-dren in the Dallas/Fort Worth area.

Bill A. RobertsVice President

Bill Roberts is a private bankersupporting Morgan Stanley branchesin Dallas. Bill has 11 years of experi-ence in the financial services indus-try. Before joining Morgan Stanley,Bill was a regional banking consult-ant for Wells Fargo Advisors andMerrill Lynch. Bill graduated fromFlorida State College with a BA inbusiness administration. He residesin Frisco with his wife and two dogs.Outside of work, Bill enjoys music,sports, and travel.

Yolanda MezaClient Service Associate

Yolanda has multifaceted dutieswhich include coordinating thegroup’s overall day-to-day operations,implementing business managementsystems through computer basedresearch and restructuring businessmodels to increase client service qual-ity. With 35 years of financial servicesexperience Yolanda adds tremendousvalue to the Piedmont clients she sup-ports. When away from the officeYolanda enjoys the outdorrs andspending time with family.

What Makes The Piedmont Groupat Morgan Stanley Different?OOuurr tteeaamm ddiiffffeerrss ffrroomm ootthheerr aaddvviissoorrssiinn 44 wwaayyss..

OOnnee.. We believe that adding anotherlayer of management is inefficient &expensive so, aside from hedge fundsand other alternative investments,we do not hire outside managers toinvest our clients’ capital.

TTwwoo.. We believe regular communica-tion, both from and to our clients, iscrucial to their success, but merelysaying we contact our clients is notas impactful as implementing a con-tact program from the start of eachrelationship. Every relationshipbegins with a written contact sched-ule to ensure that whether the finan-cial markets are up or down we arecalling routinely to answer any ques-tions and update clients on theirholdings.

TThhrreeee.. As is the case with manyfinancial advisors, we believe in aholistic wealth management process.The difference is, we have built ateam of financial professionals whohave the specific training and experi-ence to consult with and advise ourclients in each of the wealth manage-ment disciplines. The team includes

professionals who have experience ininvestment management, retirementplans and planning, wealth protec-tion and transfer through trusts, edu-cational funding and executive bene-fit plans. In addition, we have accessto Morgan Stanley's Specialists in theareas of Social Security planning andanalysis, long-term care planning,credit management and alternativeinvestments (including hedge funds,private equity and managed futures).Together we can create, monitor,adjust and update a documented planto achieve your financial goals andobjectives.

FFoouurr.. Possibly the most importantPiedmont Group difference is howwe manage risk. Most traditionalportfolio construction techniquesrely on financial theories which pre-sume rational economic behavior.The two most popular such theoriesare Modern Portfolio Theory andStrategic Asset Allocation. They areboth based on the optimization ofmarket equilibrium models and relyheavily on historical market averages.We too believe these techniques haveconsiderable valid application for ourclients - but they are not enough. Inour opinion, the critical weaknessesof these techniques are that the mar-

kets are seldom in equilibrium andalmost never experience average per-formance. Although each of theseweaknesses might be overcome withenough time, there will likely not beenough time to overcome theunmodeled event. That is the eventthat, according to theory, should notor could not ever happen.Unfortunately, such “aberrational”events or periods are not aberrationalat all. Indeed, we even have a namefor them – the Black Swan. ThePiedmont Group works to correct forthese weaknesses by employingadaptive models. Our adaptive mod-els factor in market trends as well asthe momentum and relative strengthof various financial asset classes.These techniques drive portfoliostoward the stronger areas of thefinancial marketplace where currentinvestor expectations and behaviorsare creating positive change.Likewise, our process is designed tominimize or avoid areas where nega-tive expectations are dictating weak-ness, possibly in spite of some notionof longer-term fundamental value.For the Piedmont Group, the linch-pin of our efforts to capture return isour awareness of the need to pre-serve capital.

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Investment Management

Estate Planning

Integrated Planning

Liquidity

Retirement

Risk Management

Thoughtful decision-making usuallybegins with a lot of questions. As youget answers and information, you candevelop a framework for evaluatingdi�erent choices and strategies. Little by little, you gain both the knowledgeand the confidence to make decisionsand create a wealth plan that helps youachieve your goals.

You will find your Morgan Stan-ley Financial Advisor to be a sourceof objective information and ideas asyou begin to assess how to best man-age your wealth. Over the course ofmany years, our firm and FinancialAdvisors have developed an in-depthunderstanding of virtually all the chal-lenges, goals, preferences, styles and

strategies that distinguish wealthy in-vestors. This experience is combinedwith access to a wide array of resourcesdesigned to help you maximize whatyou have and accomplish your specificgoals — whether you are preparing forthe cost of educating children, man-aging risk in your portfolio or findingways to increase the impact of yourcharitable contributions.

Your Financial Advisor is an advocatewithin our firm, an intelligent editor whoselects and aligns the many capabilitiesof Morgan Stanley for you, deliveringresources to you in the way that isappropriate for how you invest andwhat you want to achieve. 

Charitable Pursuits

Business Strategies

Education Funding

OVER THE YEARS, YOU WILL MAKE MANY FINANCIAL DECISIONS.ONE IN PARTICULAR IS LIKELY TO HAVE A LASTING IMPACT ON

YOUR WELL BEING AND THAT OF YOUR FAMILY:THE CHOICE OF A FINANCIAL ADVISOR.

A CULTURE of

EXCELLENCE

Charting a prudent course tofinancial independence requires awell-conceived, personalizedfinancial plan with defined, long-term goals. Our consultativewealth advisory process wasdeveloped to help generate thatplan. Its key steps are designed toresult in a broad, cohesive planfor your financial future.

1 We will begin by discussing whatmatters most to you and what youwant to accomplish with your wealth.In addition to your finances andinvestments, we will talk about you,your values, lifestyle, your worriesand what you are passionate about.

A ConsultativeProcess

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2 We will analyze your personal andfinancial information, assess risks, andidentify potential threats to your financialhealth. Then we will present you witha comprehensive plan to address yourincome and cash flow needs, borrowingrequirements, asset protection,retirement planning, wealth transfer andphilanthropy goals.

3 Our objective approach toimplementing your plan will payspecial attention to how its variousaspects can affect, enhance andintegrate with each other. Whenappropriate, we will suggestseeking additional, in-depth adviceon particularly complex planning,financial and family issues wehave identified.

4 We will review your portfoliotogether at your request. And whenyour circumstances change, we willwork with you to revise your strategyand reposition your assets to reflectyour new needs and goals.

DiscoverAnalyze

ImplementReview

Morgan Stanley strives to offer clients the finest in financial thinking,products and execution to help them meet their individual needs andachieve their personal financial goals. When we work together, you’llbenefit from personalized advice, objective guidance and dedication toyour success as an investor. With access to Morgan Stanley’srenowned global resources and investment opportunities, we can helpyou develop and maintain an optimal investment strategy. Our wealthmanagement strategy will address key areas of your financial lifebeyond traditional investments and may incorporate diverse recom-mendations for building and protecting your wealth.

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© 2013 Morgan Stanley Smith Barney LLC. Member SIPC. 1713050 07/2013

This material is intended only for clients and prospective clientsof the Portfolio Management program. It has been prepared solelyfor informational purposes only and is not an offer to buy or sellor a solicitation of any offer to buy or sell any security or otherfinancial instrument, or to participate in any trading strategy.

The individuals mentioned as the Portfolio Management Teamare Financial Advisors with Morgan Stanley participating in theMorgan Stanley Portfolio Management program. The PortfolioManagement program is an investment advisory program in whichthe client’s Financial Advisor invests the client’s assets on a discre-tionary basis in a range of securities. The Portfolio Managementprogram is described in the applicable Morgan Stanley ADV Part 2,available at www.morganstanley.com/ADV or from your FinancialAdvisor.

Past performance of any security is not a guarantee of futureperformance. There is no guarantee that this investment strategywill work under all market conditions.

Morgan Stanley Financial Advisors do not provide tax or legaladvice. This material was not intended or written to be used for thepurpose of avoiding tax penalties that may be imposed on the tax-payer. Clients should consult their tax advisor for matters involving

taxation and tax planning and their attorney for matters involvingtrust and estate planning and other legal matters. Morgan StanleySmith Barney LLC offers a wide array of brokerage and advisoryservices to its clients, each of which may create a different type ofrelationship with different obligations to you. Please contact us tounderstand these differences.

Morgan Stanley Smith Barney LLC is a registered brokerdealer,not a bank. Where appropriate, Morgan Stanley Smith Barney LLChas entered into arrangements with banks and other third parties toassist in offering certain banking-related products and services.Unless otherwise specifically disclosed to you in writing, invest-ments and services offered through Morgan Stanley are not insuredby the FDIC, are not deposits or other obligations of, or guaranteedby, banks and involve investment risks, including possible loss ofprincipal amount invested.

Asset allocation and diversification do not guarantee a profit orprotect against loss.

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