Morgan Stanley Funds (UK) - Multi-Asset Sustainable Moderate Fund I GBP Accumulation

OBJECTIVES AND INVESTMENT POLICY Objective 2 The Fund aims to provide growth and income over 3 to 5 years. The Fund aims to achieve its investment objective by managing total portfolio risk by seeking to achieve a target volatility level. The fund will target a volatility of 8% which is the midpoint within a range of 6% – 10%. Main Investments 2 At least 70% of the Fund's investments will be in a broad asset mix including but not limited to equity, fixed income securities, commodity linked investments and cash or cash equivalents while incorporating ESG considerations and taking into account the long-term global warming objectives of the Paris Agreement. Investment Policy 2 To invest in equities, including closed-end Real Estate Investment Trusts (REITs); fixed Income securities (including investment grade, non-investment grade and unrated); money market instruments and cash, this investment may be direct, or via derivatives; commodity-linked investments to implement tactical views on commodities via exchange traded commodities (ETCs) and/or commodity linked notes; open and closed ended collective investment schemes, including other Funds of the Company and ETFs. 2 The Fund may invest in financial derivative instruments to achieve its investment objective and derivatives may be used for both investment and hedging purposes. These derivative instruments may include, but are not limited to, futures, options, warrants, contracts for difference, forward contracts on financial instruments and options on such contracts, credit-linked instruments and swap contracts, whether traded on or off exchange. 2 The Fund may invest up to 10% of its net assets in China AShares via Stock Connect. Other Information 2 Sustainability factors criteria are considered by the Investment Adviser during both the investment and research process to limit exposure to Sustainability risks and seek out investment opportunities. 2 The Investment Adviser shall not knowingly invest in companies associated with severe ESG controversies, controversial weapons and civilian firearms, gambling, tobacco, thermal coal and oil sands. The details of the above exclusions can be found in the Fund's exclusion policy which is available on the Company's website (on www.msim.com). 2 The Investment Adviser will also allocate 5% to 30% of the Fund for investment in assets with a measurable positive social or environmental impact, alongside a competitive longterm financial return. 2 Income may be paid in cash or additional shares. 2 The fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks. However, investors can compare the Fund's performance against other funds in the Investment Association (IA) Volatility Managed Funds sector. Buying and selling shares 2 Investors may buy or sell shares on any London working day, or any other day if decided by the Authorised Corporate Director.