2015 asset return analysis
- 1. J AN U AR Y 0 4 2 0 1 6 United States Past performance is not a guarantee of future performance. The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Value investing seeks underpriced stocks, but there is no guarantee that a stock's price will rise. Investing in smaller/mid-cap companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. International investing entails greater risk, as well as greater potential rewards compared to U.S. investing. These risks include political and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economics. Bonds are subject to interest rate risk. When interest rates rise, bond prices fall; generally the longer a bond's maturity, the more sensitive it is to this risk. Bonds may also be subject to call risk, which is the risk that the issuer will redeem the debt at its option, fully or partially, before the scheduled maturity date. The market value of debt instruments may fluctuate, and proceeds from sales prior to maturity may be more or less than the amount originally invested or the maturity value due to changes in market conditions or changes in the credit quality of the issuer. Bonds are subject to the credit risk of the issuer. This is the risk that the issuer might be unable to make interest and/or principal payments on a timely basis. Bonds are also subject to reinvestment risk, which is the risk that principal and/or interest payments from a given investment may be reinvested at a lower interest rate. Information provided herein has been obtained from outside sources that are deemed to be reliable. However, Morgan Stanley Wealth Management has not independently verified them and we make no guarantees, express or implied, as to their accuracy or completeness or as to whether they are current. This material has been prepared 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. This is not a research report and was not prepared by the research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. It was prepared by Morgan Stanley Wealth Management sales, trading or other non-research personnel. Past performance is not necessarily a guide to future performance. Please see additional important information and qualifications at the end of this material. | Page 1 2015 Year-End Asset Return Analysis • Monthly, Quarterly, Annual, and Long-term tables of the major U.S. indices. • Absolute and Relative Performance for the S&P 500 Sectors/Groups. Morgan Stanley Wealth Management Capital Markets Patrick Natale Simon Kong Rose Lauricella
- 2. 04 January 2016 The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Please refer to important information and qualifications at the end of this material. 2 Figure 1. Month-End Asset Return Table – December 2015 Total Return (%) Year One- Quarter- Three- Six- Twelve- December 31, 2015 Close 2015 Month to-Date Month Month Month Dow Jones Industrials 17,425.03 0.22 -1.52 7.69 7.69 0.19 0.22 S&P 500 Composite 2,043.94 1.38 -1.58 7.04 7.04 0.15 1.38 Unweighted - Geometric 375.45 -4.68 -2.78 4.12 4.12 -4.51 -4.68 Unweighted - Arithmetic 483.36 -1.51 -2.51 5.05 5.05 -2.49 -1.51 S&P Industrials - non GICS (a) 2,735.92 0.79 -1.67 7.12 7.12 -0.75 0.79 S&P GIC Utilities 220.00 -4.85 2.17 1.07 1.07 6.52 -4.85 S&P GIC Financials 321.73 -1.53 -2.12 5.96 5.96 -1.16 -1.53 S&P MidCap 400 1,398.58 -2.18 -4.17 2.60 2.60 -6.11 -2.18 S&P SmallCap 600 671.74 -1.97 -4.79 3.72 3.72 -5.89 -1.97 S&P SuperComposite 1500 470.91 1.01 -1.88 6.59 6.59 -0.54 1.01 S&P 500 Growth 1,163.70 5.52 -1.52 7.86 7.86 2.65 5.52 S&P 500 Value 876.09 -3.13 -1.68 6.05 6.05 -2.70 -3.13 Value Line Geometric Composite (a) 445.80 -11.24 -4.65 1.64 1.64 -10.96 -11.24 NASDAQ Composite (a) 5,007.41 5.73 -1.98 8.38 8.38 0.41 5.73 NASDAQ Industrials (a) 4,101.19 8.24 -1.61 7.53 7.53 1.17 8.24 NASDAQ 100 (a) 4,593.27 8.43 -1.53 9.86 9.86 4.47 8.43 AMEX Composite (a) 2,149.15 -12.08 -4.66 -1.11 -1.11 -8.76 -12.08 Wilshire 5000 (a) 21,167.86 -2.32 -2.27 5.21 5.21 -3.09 -2.32 Russell 2000 (a) 1,135.89 -5.71 -5.19 3.20 3.20 -9.41 -5.71 MSCI EAFE Index (a) 1,716.28 -3.30 -1.42 4.37 4.37 -6.85 -3.30 MSCI ACWI Index (a) 399.36 -4.26 -1.92 4.64 4.64 -5.70 -4.26 MSCI World Index - Developed Mkt (a) 1,662.79 -2.74 -1.87 5.11 5.11 -4.20 -2.74 MSCI Emerging Markets (EM) Index (a) 794.14 -16.96 -2.48 0.26 0.26 -18.32 -16.96 (a) Price Only Return (excludes dividends) Source: Morgan Stanley Wealth Management, MSCI and Factset One Mo. Three Mo. Six Mo. Twelve Mo. U.S. Treasury Yields 12/31/2015 Ago Ago Ago Ago Cash (3-Month Treasury Bills) 0.17% 0.18% 0.01% 0.00% 0.02% Bonds (10-Yr Treasury Notes) 2.28% 2.22% 2.06% 2.33% 2.17% Bonds (30-Yr Treasury Bonds) 3.02% 2.99% 2.88% 3.10% 2.75% Source: Factset
- 3. 04 January 2016 The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Please refer to important information and qualifications at the end of this material. 3 Figure 2. Long-Term Asset Return Table Annualized Total Return (%) Three Five Seven Ten Fifteen December 31, 2015 Close Year Year Year Year Year Dow Jones Industrials 17,425.03 12.63 11.28 13.23 7.73 5.81 S&P 500 Composite 2,043.94 15.13 12.57 14.81 7.31 5.00 Unweighted - Geometric 375.45 12.54 9.46 14.06 4.11 3.63 Unweighted - Arithmetic 483.36 15.26 12.35 18.04 8.42 8.59 S&P Industrials - non GICS (a) 2,735.92 12.86 10.75 13.17 6.83 3.96 S&P GIC Utilities 220.00 11.59 11.03 10.34 7.41 4.09 S&P GIC Financials 321.73 15.45 10.45 11.63 -0.65 0.79 S&P MidCap 400 1,398.58 12.76 10.68 16.36 8.18 8.32 S&P SmallCap 600 671.74 13.57 11.48 15.43 8.01 8.92 S&P SuperComposite 1500 470.91 14.90 12.39 14.97 7.41 5.40 S&P 500 Growth 1,163.70 17.19 14.06 16.56 8.70 5.17 S&P 500 Value 876.09 12.83 10.96 12.96 5.80 4.66 Value Line Geometric Composite (a) 445.80 6.62 3.67 10.20 0.78 0.84 NASDAQ Composite (a) 5,007.41 18.37 13.55 17.95 8.55 4.82 NASDAQ Industrials (a) 4,101.19 16.48 13.43 19.32 8.23 7.02 NASDAQ 100 (a) 4,593.27 19.96 15.67 20.97 10.81 4.59 AMEX Composite (a) 2,149.15 -3.01 -0.54 6.34 2.02 5.99 Wilshire 5000 (a) 21,167.86 12.18 9.64 12.84 5.39 3.76 Russell 2000 (a) 1,135.89 10.18 7.71 12.45 5.37 5.86 MSCI EAFE Index (a) 1,716.28 2.28 0.69 4.78 0.21 0.94 MSCI ACWI Index (a) 399.36 5.54 3.85 N/A N/A N/A MSCI World Index - Developed Mkt (a) 1,662.79 7.50 5.37 8.82 2.83 2.08 MSCI Emerging Markets (EM) Index (a) 794.14 -9.04 -7.16 4.93 1.18 5.95 (a) Price Only Return (excludes dividends) Source: Morgan Stanley Wealth Management, MSCI and Factset
- 4. 04 January 2016 The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Please refer to important information and qualifications at the end of this material. 4 Figure3.MonthlyAssetReturnTable TotalReturn(%) December31,2015Jan.Feb.Mar.AprilMayJuneJulyAug.Sept.Oct.Nov.Dec.2015 DowJonesIndustrials-3.586.01-1.850.451.35-2.060.52-6.18-1.358.590.71-1.520.22 S&P500Composite-3.005.75-1.580.961.29-1.942.10-6.03-2.478.440.30-1.581.38 Unweighted-Geometric-3.095.61-0.980.170.69-2.340.35-5.35-3.457.19-0.08-2.78-4.68 Unweighted-Arithmetic-2.835.85-0.850.390.88-2.210.77-5.00-3.047.560.19-2.51-1.51 S&PIndustrials-nonGICS(a)-2.456.09-1.851.111.13-2.221.59-6.17-2.809.09-0.14-1.670.79 S&PGICUtilities2.37-6.40-1.04-0.450.67-6.016.06-3.442.921.09-2.142.17-4.85 S&PGICFinancials-6.905.85-0.610.181.84-0.303.12-6.76-2.986.241.89-2.12-1.53 S&PMidCap400-1.125.121.32-1.491.78-1.320.14-5.58-3.225.631.35-4.17-2.18 S&PSmallCap600-3.496.031.60-2.331.531.03-0.85-5.18-3.506.102.68-4.79-1.97 S&PSuperComposite1500-2.875.71-1.250.651.33-1.791.84-5.97-2.578.140.45-1.881.01 S&P500Growth-1.675.98-1.670.481.78-1.913.62-6.08-2.209.400.12-1.525.52 S&P500Value-4.445.49-1.481.500.74-1.970.38-5.98-2.797.320.51-1.68-3.13 ValueLineGeometricComposite(a)-3.285.74-0.39-0.710.28-1.73-1.93-5.44-5.546.300.27-4.65-11.24 NASDAQComposite(a)-2.137.08-1.260.832.60-1.642.84-6.86-3.279.381.09-1.985.73 NASDAQIndustrials(a)-2.477.85-0.601.791.16-0.644.43-6.82-3.309.180.10-1.618.24 NASDAQ100(a)-2.077.04-2.411.862.13-2.474.37-6.85-2.1911.190.34-1.538.43 AMEXComposite(a)-0.503.71-5.664.44-2.24-3.042.72-8.03-2.356.05-2.18-4.66-12.08 Wilshire5000(a)-2.815.47-1.190.391.02-1.881.55-6.21-3.297.600.05-2.27-2.32 Russell2000(a)-3.265.831.57-2.612.160.59-1.22-6.40-5.075.563.12-5.19-5.71 MSCIEAFEIndex(a)0.445.81-1.963.73-1.01-2.982.02-7.60-5.327.74-1.73-1.42-3.30 MSCIACWIIndex(a)-1.635.40-1.782.72-0.41-2.530.77-7.04-3.807.76-0.99-1.92-4.26 MSCIWorldIndex-DevelopedMkt(a)-1.885.68-1.812.160.05-2.461.73-6.81-3.867.83-0.67-1.87-2.74 MSCIEmergingMarkets(EM)Index(a)0.552.98-1.597.51-4.16-3.18-7.26-9.20-3.267.04-3.96-2.48-16.96 (a)PriceOnlyReturn(excludesdividends) Source:MorganStanleyWealthManagement,MSCIandFactset
- 5. 04 January 2016 The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Please refer to important information and qualifications at the end of this material. 5 20112012201220122012201320132013201320142014201420142015201520152015 December31,2015Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 DowJonesIndustrials12.758.83-1.845.02-1.7411.922.912.1210.18-0.152.831.875.190.32-0.29-6.967.69 S&P500Composite11.8012.58-2.756.35-0.3810.612.915.2410.511.815.231.134.930.950.28-6.447.04 Unweighted-Geometric11.6311.74-5.045.172.2711.702.746.249.452.395.14-1.085.211.35-1.50-8.304.12 Unweighted-Arithmetic12.6012.54-4.345.842.9512.333.346.709.932.945.53-0.695.831.99-0.96-7.185.05 S&PIndustrials-nonGICS(a)11.3511.29-3.036.27-2.139.681.765.3610.160.815.120.493.401.57-0.02-7.357.12 S&PGICUtilities8.28-1.626.55-0.53-2.8613.02-2.730.192.7910.097.77-3.9613.19-5.17-5.805.401.07 S&PGICFinancials10.8222.05-6.836.955.9211.427.252.8710.332.612.302.337.25-2.051.72-6.725.96 S&PMidCap40012.9713.49-4.935.443.6113.451.007.548.333.044.33-3.986.355.31-1.06-8.502.60 S&PSmallCap60017.1611.99-3.585.402.2211.813.9210.739.831.132.07-6.739.853.960.19-9.273.72 S&PSuperComposite150012.0912.63-2.966.250.0310.882.795.6310.311.885.050.445.201.390.17-6.696.59 S&P500Growth10.8012.26-2.056.40-2.049.332.486.6011.151.395.821.925.062.470.31-4.837.86 S&P500Value12.9712.96-3.586.301.6411.973.363.849.832.264.600.254.78-0.690.24-8.256.05 ValueLineGeometricComposite(a)10.8212.37-6.844.150.4311.072.657.848.141.162.01-5.365.151.87-2.15-12.401.64 NASDAQComposite(a)7.8618.67-5.066.17-3.108.214.1510.8210.740.544.981.935.403.481.75-7.358.38 NASDAQIndustrials(a)5.7615.08-3.145.691.6111.855.7211.019.05-2.072.43-2.264.034.552.32-5.917.53 NASDAQ100(a)6.4820.96-5.067.01-4.945.933.2310.6111.620.107.065.194.612.301.46-4.919.86 AMEXComposite(a)11.115.60-3.244.71-3.362.14-6.675.232.665.658.41-6.23-6.19-2.65-1.01-7.74-1.11 Wilshire5000(a)11.3812.25-3.705.51-0.3310.692.375.839.581.474.33-0.494.381.28-0.48-7.895.21 Russell2000(a)15.0212.06-3.834.881.4212.032.739.858.370.811.70-7.659.353.990.09-12.223.20 MSCIEAFEIndex(a)2.869.97-8.376.146.174.38-2.1110.945.360.002.95-6.39-3.864.19-0.37-10.754.37 MSCIACWIIndex(a)6.7211.28-6.366.242.465.98-1.187.386.930.614.31-2.770.061.83-0.29-9.884.64 MSCIWorldIndex-DevelopedMkt(a)7.1110.94-5.826.132.067.17-0.077.687.610.774.15-2.580.661.82-0.30-8.865.11 MSCIEmergingMarkets(EM)Index(a)4.0813.65-10.006.975.24-1.92-9.145.011.54-0.805.64-4.33-4.881.91-0.24-18.530.26 Figure4.QuarterlyAssetReturnTable (a)PriceOnlyReturn(excludesdividends) Source:MorganStanleyWealthManagement,MSCIandFactset TotalReturn(%)
- 6. 04 January 2016 The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Please refer to important information and qualifications at the end of this material. 6 Figure5.AnnualAssetReturnTable TotalReturn(%) YTD December31,201520152014201320122011201020092008200720062005200420032002 DowJonesIndustrials0.2210.0229.6010.238.3314.0622.64-31.938.8719.031.725.5228.24-15.01 S&P500Composite1.3813.6932.3916.002.1115.0926.47-36.995.4615.784.9010.8728.67-22.09 Unweighted-Geometric-4.6812.0433.4514.12-3.4018.7334.66-45.69-2.6912.695.8413.9836.32-24.38 Unweighted-Arithmetic-1.5114.1836.1617.31-0.3321.5846.68-39.510.3515.829.1917.3441.97-16.85 S&PIndustrials-nonGICS(a)0.7910.1129.5512.243.2313.3625.91-34.8610.7012.922.378.6026.35-24.59 S&PGICUtilities-4.8528.9813.211.2919.915.4611.91-28.9819.3820.9916.8424.2826.26-29.99 S&PGICFinancials-1.5315.2035.6328.82-17.0612.1317.22-55.32-18.6319.196.4710.8931.03-14.64 S&PMidCap400-2.189.7733.5017.88-1.7326.6537.34-36.247.9810.3112.6516.4635.60-14.52 S&PSmallCap600-1.975.7641.3116.331.0226.3125.57-31.08-0.3015.107.6722.6338.78-14.63 S&PSuperComposite15001.0113.0832.8016.171.7516.4027.26-36.725.4615.325.6311.7729.56-21.30 S&P500Growth5.5214.8932.7514.614.6515.0731.58-34.929.1211.023.976.1325.65-23.57 S&P500Value-3.1312.3631.9917.68-0.4815.1321.19-39.201.9920.785.8415.6431.74-20.85 ValueLineGeometricComposite(a)-11.242.6932.9611.54-11.3920.4736.77-48.69-3.8210.972.0011.5137.39-28.57 NASDAQComposite(a)5.7313.4038.3215.91-1.8016.9143.89-40.549.819.521.378.5950.01-31.55 NASDAQIndustrials(a)8.241.9943.1419.70-0.7224.9846.72-45.334.2212.390.1215.8455.74-25.92 NASDAQ100(a)8.4317.9434.9916.822.7019.2253.54-41.8918.676.791.4910.4449.12-37.58 AMEXComposite(a)-12.080.752.993.393.1721.0130.58-42.0017.1716.9022.6422.2242.36-2.74 Wilshire5000(a)-2.329.9731.4213.69-1.2715.6927.09-38.683.9413.904.5710.8529.44-22.08 Russell2000(a)-5.713.5337.0014.63-5.4525.3125.22-34.80-2.7517.003.3217.0045.37-21.58 MSCIEAFEIndex(a)-3.30-7.3519.4313.55-14.824.9027.75-45.098.6223.4710.8617.5935.28-17.52 MSCIACWIIndex(a)-4.262.1020.2513.43-9.41N/AN/AN/AN/AN/AN/AN/AN/AN/A MSCIWorldIndex-DevelopedMkt(a)-2.742.9324.1013.18-7.619.5526.98-42.087.0917.957.5612.8430.81-21.06 MSCIEmergingMarkets(EM)Index(a)-16.96-4.63-4.9815.15-20.4116.3674.50-54.4836.4829.1830.3122.4551.59-7.97 (a)PriceOnlyReturn(excludesdividends) Source:MorganStanleyWealthManagement,MSCIandFactset
- 7. 04 January 2016 The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Please refer to important information and qualifications at the end of this material. 7 Figure 6. S&P 500 Sector Performance, Ranked by December Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- December 31, 2015 WT 2015 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Consumer Staples 10.06 6.60 2.86 7.64 7.64 7.43 6.60 5.14 4.51 0.56 0.56 7.27 5.14 Utilities 2.99 -4.85 2.17 1.07 1.07 6.52 -4.85 -6.14 3.81 -5.58 -5.58 6.36 -6.14 Health Care 15.16 6.89 1.78 9.22 9.22 -2.43 6.89 5.43 3.41 2.03 2.03 -2.58 5.43 Telecommunication Services 2.43 3.40 1.75 7.61 7.61 0.24 3.40 1.99 3.38 0.53 0.53 0.09 1.99 Industrials 10.05 -2.53 -2.00 8.00 8.00 0.55 -2.53 -3.86 -0.43 0.89 0.89 0.40 -3.86 Financials 16.47 -1.53 -2.12 5.96 5.96 -1.16 -1.53 -2.87 -0.56 -1.01 -1.01 -1.31 -2.87 Information Technology 20.69 5.92 -2.29 9.17 9.17 5.13 5.92 4.48 -0.72 1.99 1.99 4.97 4.48 Consumer Discretionary 12.89 10.11 -2.78 5.79 5.79 3.08 10.11 8.60 -1.22 -1.17 -1.17 2.93 8.60 Materials 2.76 -8.38 -4.16 9.69 9.69 -8.84 -8.38 -9.63 -2.63 2.48 2.48 -8.98 -9.63 Energy 6.50 -21.12 -9.87 0.20 0.20 -17.24 -21.12 -22.19 -8.42 -6.39 -6.39 -17.37 -22.19 Source: Factset & Standard & Poor’s Figure 7. S&P 500 Sector Performance, Ranked by 2015 Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- December 31, 2015 WT 2015 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Consumer Discretionary 12.89 10.11 -2.78 5.79 5.79 3.08 10.11 8.60 -1.22 -1.17 -1.17 2.93 8.60 Health Care 15.16 6.89 1.78 9.22 9.22 -2.43 6.89 5.43 3.41 2.03 2.03 -2.58 5.43 Consumer Staples 10.06 6.60 2.86 7.64 7.64 7.43 6.60 5.14 4.51 0.56 0.56 7.27 5.14 Information Technology 20.69 5.92 -2.29 9.17 9.17 5.13 5.92 4.48 -0.72 1.99 1.99 4.97 4.48 Telecommunication Services 2.43 3.40 1.75 7.61 7.61 0.24 3.40 1.99 3.38 0.53 0.53 0.09 1.99 Financials 16.47 -1.53 -2.12 5.96 5.96 -1.16 -1.53 -2.87 -0.56 -1.01 -1.01 -1.31 -2.87 Industrials 10.05 -2.53 -2.00 8.00 8.00 0.55 -2.53 -3.86 -0.43 0.89 0.89 0.40 -3.86 Utilities 2.99 -4.85 2.17 1.07 1.07 6.52 -4.85 -6.14 3.81 -5.58 -5.58 6.36 -6.14 Materials 2.76 -8.38 -4.16 9.69 9.69 -8.84 -8.38 -9.63 -2.63 2.48 2.48 -8.98 -9.63 Energy 6.50 -21.12 -9.87 0.20 0.20 -17.24 -21.12 -22.19 -8.42 -6.39 -6.39 -17.37 -22.19 Source: Factset & Standard & Poor’s
- 8. 04 January 2016 The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Please refer to important information and qualifications at the end of this material. 8 Figure 8. S&P 500 Group Performance, Ranked by December Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- December 31, 2015 WT 2015 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Household Products 1.95 -4.57 5.25 11.06 11.06 6.27 -4.57 -5.87 6.94 3.75 3.75 6.11 -5.87 Personal Products 0.11 11.21 4.68 9.53 9.53 2.28 11.21 9.69 6.36 2.32 2.32 2.12 9.69 Health Care Providers & Services 2.74 12.03 3.92 3.88 3.88 -7.44 12.03 10.50 5.59 -2.95 -2.95 -7.58 10.50 Food & Staples Retailing 2.36 -1.58 3.74 3.47 3.47 -0.23 -1.58 -2.92 5.40 -3.34 -3.34 -0.38 -2.92 Food Products 1.72 12.29 3.34 7.37 7.37 5.70 12.29 10.76 4.99 0.30 0.30 5.54 10.76 Electric Utilities 1.73 -5.41 3.18 2.57 2.57 7.25 -5.41 -6.70 4.83 -4.18 -4.18 7.09 -6.70 Life Sciences Tools & Services 0.65 14.59 2.51 18.20 18.20 9.61 14.59 13.03 4.16 10.42 10.42 9.44 13.03 Airlines 0.65 -7.22 2.48 11.37 11.37 18.11 -7.22 -8.49 4.13 4.05 4.05 17.93 -8.49 Real Estate Investment Trusts 2.71 4.75 2.40 8.62 8.62 11.57 4.75 3.32 4.04 1.47 1.47 11.40 3.32 Biotechnology 3.71 5.92 2.02 11.28 11.28 -4.50 5.92 4.48 3.66 3.95 3.95 -4.64 4.48 Gas Utilities 0.04 21.65 1.98 5.39 5.39 39.60 21.65 19.99 3.62 -1.54 -1.54 39.39 19.99 Diversified Telecommunication Services 2.43 3.40 1.75 7.61 7.61 0.24 3.40 1.99 3.38 0.53 0.53 0.09 1.99 Tobacco 1.61 21.86 1.73 9.52 9.52 17.49 21.86 20.20 3.36 2.31 2.31 17.31 20.20 Industrial Conglomerates 2.58 16.84 1.65 18.54 18.54 13.02 16.84 15.24 3.28 10.74 10.74 12.85 15.24 Multi-Utilities 1.16 -1.73 1.06 -0.67 -0.67 8.15 -1.73 -3.07 2.68 -7.21 -7.21 7.99 -3.07 Health Care Equipment & Supplies 2.15 6.17 1.03 11.72 11.72 1.38 6.17 4.72 2.65 4.37 4.37 1.23 4.72 Health Care Technology 0.10 -6.94 0.96 0.35 0.35 -12.87 -6.94 -8.21 2.57 -6.25 -6.25 -13.00 -8.21 Pharmaceuticals 5.80 5.79 0.85 9.00 9.00 -0.76 5.79 4.34 2.47 1.83 1.83 -0.91 4.34 Leisure Equipment & Products 0.09 5.23 0.83 11.25 11.25 0.25 5.23 3.79 2.45 3.93 3.93 0.10 3.79 Internet Software & Services 4.28 33.32 0.82 19.42 19.42 29.86 33.32 31.50 2.44 11.56 11.56 29.66 31.50 Hotels Restaurants & Leisure 1.86 16.49 0.62 6.51 6.51 7.10 16.49 14.90 2.23 -0.50 -0.50 6.94 14.90 Internet & Catalog Retail 2.21 83.46 0.55 22.59 22.59 38.14 83.46 80.96 2.16 14.52 14.52 37.93 80.96 Beverages 2.31 11.89 0.49 8.27 8.27 12.06 11.89 10.36 2.10 1.14 1.14 11.89 10.36 Multiline Retail 0.62 -11.17 0.48 -6.77 -6.77 -16.64 -11.17 -12.38 2.09 -12.90 -12.90 -16.76 -12.38 Software 4.39 13.28 0.25 17.97 17.97 15.09 13.28 11.73 1.86 10.21 10.21 14.92 11.73 Communications Equipment 1.40 -11.33 0.00 0.67 0.67 -5.64 -11.33 -12.54 1.61 -5.95 -5.95 -5.78 -12.54 Aerospace & Defense 2.71 5.43 -0.79 8.74 8.74 4.95 5.43 3.99 0.80 1.59 1.59 4.79 3.99 Professional Services 0.29 6.38 -0.82 3.92 3.92 1.02 6.38 4.92 0.77 -2.92 -2.92 0.86 4.92 Semiconductor & Semiconductor Equipment 2.47 -0.74 -1.07 13.45 13.45 6.12 -0.74 -2.09 0.52 5.99 5.99 5.96 -2.09 Trading Companies & Distributors 0.17 -19.06 -1.24 6.15 6.15 -10.42 -19.06 -20.17 0.34 -0.83 -0.83 -10.55 -20.17 Diversified Financial Services 2.03 -5.98 -1.47 2.64 2.64 -1.61 -5.98 -7.27 0.11 -4.12 -4.12 -1.76 -7.27 IT Services 3.68 6.78 -2.05 5.24 5.24 2.10 6.78 5.32 -0.48 -1.69 -1.69 1.95 5.32 Specialty Retail 2.62 9.41 -2.19 4.68 4.68 7.26 9.41 7.92 -0.62 -2.21 -2.21 7.10 7.92 Commercial Banks 6.04 0.84 -2.23 6.90 6.90 -2.33 0.84 -0.54 -0.66 -0.13 -0.13 -2.48 -0.54 Commercial Services & Supplies 0.41 -3.30 -2.65 2.12 2.12 2.10 -3.30 -4.62 -1.09 -4.60 -4.60 1.95 -4.62 Insurance 2.71 2.33 -2.71 6.69 6.69 1.48 2.33 0.93 -1.15 -0.33 -0.33 1.32 0.93 Metals & Mining 0.24 -38.93 -3.12 -2.11 -2.11 -29.53 -38.93 -39.77 -1.57 -8.55 -8.55 -29.63 -39.77 Automobiles 0.62 -5.21 -3.58 6.50 6.50 -2.05 -5.21 -6.51 -2.03 -0.51 -0.51 -2.20 -6.51 Chemicals 2.10 -4.18 -3.71 13.43 13.43 -5.78 -4.18 -5.49 -2.17 5.97 5.97 -5.92 -5.49 Electronic Equipment & Instruments 0.37 -6.80 -3.84 6.25 6.25 -4.33 -6.80 -8.07 -2.30 -0.74 -0.74 -4.47 -8.07 Building Products 0.09 25.42 -3.99 13.46 13.46 16.79 25.42 23.71 -2.45 6.00 6.00 16.61 23.71 Containers & Packaging 0.30 -4.38 -4.11 -1.11 -1.11 -11.99 -4.38 -5.68 -2.57 -7.62 -7.62 -12.13 -5.68 Independent Power Producers & Energy Traders 0.06 -41.38 -4.48 -9.25 -9.25 -36.23 -41.38 -42.18 -2.94 -15.22 -15.22 -36.33 -42.18 Distributors 0.07 -17.14 -4.57 4.34 4.34 -2.67 -17.14 -18.27 -3.04 -2.53 -2.53 -2.82 -18.27 Household Durables 0.43 0.12 -4.58 3.67 3.67 -4.69 0.12 -1.25 -3.05 -3.15 -3.15 -4.83 -1.25 Construction & Engineering 0.08 -19.01 -4.75 3.16 3.16 -12.67 -19.01 -20.12 -3.22 -3.63 -3.63 -12.80 -20.12 Consumer Finance 0.83 -19.83 -4.94 -1.62 -1.62 -12.47 -19.83 -20.92 -3.42 -8.09 -8.09 -12.60 -20.92 Machinery 1.17 -14.78 -5.34 3.72 3.72 -14.73 -14.78 -15.95 -3.82 -3.10 -3.10 -14.86 -15.95 Textiles, Apparel & Luxury Goods 0.91 -1.87 -5.45 -3.42 -3.42 0.45 -1.87 -3.21 -3.94 -9.77 -9.77 0.30 -3.21 Capital Markets 2.10 -7.73 -5.74 5.30 5.30 -9.72 -7.73 -8.99 -4.23 -1.63 -1.63 -9.86 -8.99 Electrical Equipment 0.46 -15.17 -6.21 4.89 4.89 -14.47 -15.17 -16.33 -4.71 -2.01 -2.01 -14.60 -16.33 Media 3.03 -4.30 -6.29 2.42 2.42 -9.35 -4.30 -5.60 -4.79 -4.32 -4.32 -9.49 -5.60 Air Freight & Logistics 0.69 -11.36 -6.45 -0.74 -0.74 -3.91 -11.36 -12.57 -4.95 -7.27 -7.27 -4.06 -12.57 Auto Components 0.38 -3.42 -6.95 4.71 4.71 -10.52 -3.42 -4.74 -5.46 -2.18 -2.18 -10.66 -4.74 Real Estate Management & Development 0.06 0.96 -7.71 8.06 8.06 -6.54 0.96 -0.41 -6.23 0.95 0.95 -6.68 -0.41 Diversified Consumer Services 0.04 1.29 -8.72 -7.48 -7.48 13.60 1.29 -0.09 -7.25 -13.57 -13.57 13.43 -0.09 Road & Rail 0.76 -29.94 -8.84 -6.15 -6.15 -15.24 -29.94 -30.90 -7.38 -12.32 -12.32 -15.37 -30.90 Computers & Peripherals 4.10 -9.20 -9.09 -2.98 -2.98 -13.72 -9.20 -10.44 -7.63 -9.37 -9.37 -13.85 -10.44 Oil, Gas & Consumable Fuels 5.47 -21.31 -9.66 0.48 0.48 -16.81 -21.31 -22.39 -8.21 -6.13 -6.13 -16.93 -22.39 Construction Materials 0.12 35.93 -9.98 -1.01 -1.01 5.85 35.93 34.07 -8.54 -7.52 -7.52 5.69 34.07 Energy Equipment & Services 1.03 -20.06 -10.95 -1.23 -1.23 -19.46 -20.06 -21.15 -9.52 -7.73 -7.73 -19.58 -21.15 Source: Factset & Standard & Poor’s
- 9. 04 January 2016 The indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Please refer to important information and qualifications at the end of this material. 9 Figure 9. S&P 500 Group Performance, Ranked by 2015 Performance --------------TOTAL RETURN (%)-------------- ---------RELATIVE TO S&P 500--------- December 31, 2015 WT 2015 1 Mo QTD 3 Mo 6 Mo 12 Mo YTD 1 Mo QTD 3 Mo 6 Mo 12 Mo Internet & Catalog Retail 2.21 83.46 0.55 22.59 22.59 38.14 83.46 80.96 2.16 14.52 14.52 37.93 80.96 Construction Materials 0.12 35.93 -9.98 -1.01 -1.01 5.85 35.93 34.07 -8.54 -7.52 -7.52 5.69 34.07 Internet Software & Services 4.28 33.32 0.82 19.42 19.42 29.86 33.32 31.50 2.44 11.56 11.56 29.66 31.50 Building Products 0.09 25.42 -3.99 13.46 13.46 16.79 25.42 23.71 -2.45 6.00 6.00 16.61 23.71 Tobacco 1.61 21.86 1.73 9.52 9.52 17.49 21.86 20.20 3.36 2.31 2.31 17.31 20.20 Gas Utilities 0.04 21.65 1.98 5.39 5.39 39.60 21.65 19.99 3.62 -1.54 -1.54 39.39 19.99 Industrial Conglomerates 2.58 16.84 1.65 18.54 18.54 13.02 16.84 15.24 3.28 10.74 10.74 12.85 15.24 Hotels Restaurants & Leisure 1.86 16.49 0.62 6.51 6.51 7.10 16.49 14.90 2.23 -0.50 -0.50 6.94 14.90 Life Sciences Tools & Services 0.65 14.59 2.51 18.20 18.20 9.61 14.59 13.03 4.16 10.42 10.42 9.44 13.03 Software 4.39 13.28 0.25 17.97 17.97 15.09 13.28 11.73 1.86 10.21 10.21 14.92 11.73 Food Products 1.72 12.29 3.34 7.37 7.37 5.70 12.29 10.76 4.99 0.30 0.30 5.54 10.76 Health Care Providers & Services 2.74 12.03 3.92 3.88 3.88 -7.44 12.03 10.50 5.59 -2.95 -2.95 -7.58 10.50 Beverages 2.31 11.89 0.49 8.27 8.27 12.06 11.89 10.36 2.10 1.14 1.14 11.89 10.36 Personal Products 0.11 11.21 4.68 9.53 9.53 2.28 11.21 9.69 6.36 2.32 2.32 2.12 9.69 Specialty Retail 2.62 9.41 -2.19 4.68 4.68 7.26 9.41 7.92 -0.62 -2.21 -2.21 7.10 7.92 IT Services 3.68 6.78 -2.05 5.24 5.24 2.10 6.78 5.32 -0.48 -1.69 -1.69 1.95 5.32 Professional Services 0.29 6.38 -0.82 3.92 3.92 1.02 6.38 4.92 0.77 -2.92 -2.92 0.86 4.92 Health Care Equipment & Supplies 2.15 6.17 1.03 11.72 11.72 1.38 6.17 4.72 2.65 4.37 4.37 1.23 4.72 Biotechnology 3.71 5.92 2.02 11.28 11.28 -4.50 5.92 4.48 3.66 3.95 3.95 -4.64 4.48 Pharmaceuticals 5.80 5.79 0.85 9.00 9.00 -0.76 5.79 4.34 2.47 1.83 1.83 -0.91 4.34 Aerospace & Defense 2.71 5.43 -0.79 8.74 8.74 4.95 5.43 3.99 0.80 1.59 1.59 4.79 3.99 Leisure Equipment & Products 0.09 5.23 0.83 11.25 11.25 0.25 5.23 3.79 2.45 3.93 3.93 0.10 3.79 Real Estate Investment Trusts 2.71 4.75 2.40 8.62 8.62 11.57 4.75 3.32 4.04 1.47 1.47 11.40 3.32 Diversified Telecommunication Services 2.43 3.40 1.75 7.61 7.61 0.24 3.40 1.99 3.38 0.53 0.53 0.09 1.99 Insurance 2.71 2.33 -2.71 6.69 6.69 1.48 2.33 0.93 -1.15 -0.33 -0.33 1.32 0.93 Diversified Consumer Services 0.04 1.29 -8.72 -7.48 -7.48 13.60 1.29 -0.09 -7.25 -13.57 -13.57 13.43 -0.09 Real Estate Management & Development 0.06 0.96 -7.71 8.06 8.06 -6.54 0.96 -0.41 -6.23 0.95 0.95 -6.68 -0.41 Commercial Banks 6.04 0.84 -2.23 6.90 6.90 -2.33 0.84 -0.54 -0.66 -0.13 -0.13 -2.48 -0.54 Household Durables 0.43 0.12 -4.58 3.67 3.67 -4.69 0.12 -1.25 -3.05 -3.15 -3.15 -4.83 -1.25 Semiconductor & Semiconductor Equipment 2.47 -0.74 -1.07 13.45 13.45 6.12 -0.74 -2.09 0.52 5.99 5.99 5.96 -2.09 Food & Staples Retailing 2.36 -1.58 3.74 3.47 3.47 -0.23 -1.58 -2.92 5.40 -3.34 -3.34 -0.38 -2.92 Multi-Utilities 1.16 -1.73 1.06 -0.67 -0.67 8.15 -1.73 -3.07 2.68 -7.21 -7.21 7.99 -3.07 Textiles, Apparel & Luxury Goods 0.91 -1.87 -5.45 -3.42 -3.42 0.45 -1.87 -3.21 -3.94 -9.77 -9.77 0.30 -3.21 Commercial Services & Supplies 0.41 -3.30 -2.65 2.12 2.12 2.10 -3.30 -4.62 -1.09 -4.60 -4.60 1.95 -4.62 Auto Components 0.38 -3.42 -6.95 4.71 4.71 -10.52 -3.42 -4.74 -5.46 -2.18 -2.18 -10.66 -4.74 Chemicals 2.10 -4.18 -3.71 13.43 13.43 -5.78 -4.18 -5.49 -2.17 5.97 5.97 -5.92 -5.49 Media 3.03 -4.30 -6.29 2.42 2.42 -9.35 -4.30 -5.60 -4.79 -4.32 -4.32 -9.49 -5.60 Containers & Packaging 0.30 -4.38 -4.11 -1.11 -1.11 -11.99 -4.38 -5.68 -2.57 -7.62 -7.62 -12.13 -5.68 Household Products 1.95 -4.57 5.25 11.06 11.06 6.27 -4.57 -5.87 6.94 3.75 3.75 6.11 -5.87 Automobiles 0.62 -5.21 -3.58 6.50 6.50 -2.05 -5.21 -6.51 -2.03 -0.51 -0.51 -2.20 -6.51 Electric Utilities 1.73 -5.41 3.18 2.57 2.57 7.25 -5.41 -6.70 4.83 -4.18 -4.18 7.09 -6.70 Diversified Financial Services 2.03 -5.98 -1.47 2.64 2.64 -1.61 -5.98 -7.27 0.11 -4.12 -4.12 -1.76 -7.27 Electronic Equipment & Instruments 0.37 -6.80 -3.84 6.25 6.25 -4.33 -6.80 -8.07 -2.30 -0.74 -0.74 -4.47 -8.07 Health Care Technology 0.10 -6.94 0.96 0.35 0.35 -12.87 -6.94 -8.21 2.57 -6.25 -6.25 -13.00 -8.21 Airlines 0.65 -7.22 2.48 11.37 11.37 18.11 -7.22 -8.49 4.13 4.05 4.05 17.93 -8.49 Capital Markets 2.10 -7.73 -5.74 5.30 5.30 -9.72 -7.73 -8.99 -4.23 -1.63 -1.63 -9.86 -8.99 Computers & Peripherals 4.10 -9.20 -9.09 -2.98 -2.98 -13.72 -9.20 -10.44 -7.63 -9.37 -9.37 -13.85 -10.44 Multiline Retail 0.62 -11.17 0.48 -6.77 -6.77 -16.64 -11.17 -12.38 2.09 -12.90 -12.90 -16.76 -12.38 Communications Equipment 1.40 -11.33 0.00 0.67 0.67 -5.64 -11.33 -12.54 1.61 -5.95 -5.95 -5.78 -12.54 Air Freight & Logistics 0.69 -11.36 -6.45 -0.74 -0.74 -3.91 -11.36 -12.57 -4.95 -7.27 -7.27 -4.06 -12.57 Machinery 1.17 -14.78 -5.34 3.72 3.72 -14.73 -14.78 -15.95 -3.82 -3.10 -3.10 -14.86 -15.95 Electrical Equipment 0.46 -15.17 -6.21 4.89 4.89 -14.47 -15.17 -16.33 -4.71 -2.01 -2.01 -14.60 -16.33 Distributors 0.07 -17.14 -4.57 4.34 4.34 -2.67 -17.14 -18.27 -3.04 -2.53 -2.53 -2.82 -18.27 Construction & Engineering 0.08 -19.01 -4.75 3.16 3.16 -12.67 -19.01 -20.12 -3.22 -3.63 -3.63 -12.80 -20.12 Trading Companies & Distributors 0.17 -19.06 -1.24 6.15 6.15 -10.42 -19.06 -20.17 0.34 -0.83 -0.83 -10.55 -20.17 Consumer Finance 0.83 -19.83 -4.94 -1.62 -1.62 -12.47 -19.83 -20.92 -3.42 -8.09 -8.09 -12.60 -20.92 Energy Equipment & Services 1.03 -20.06 -10.95 -1.23 -1.23 -19.46 -20.06 -21.15 -9.52 -7.73 -7.73 -19.58 -21.15 Oil, Gas & Consumable Fuels 5.47 -21.31 -9.66 0.48 0.48 -16.81 -21.31 -22.39 -8.21 -6.13 -6.13 -16.93 -22.39 Road & Rail 0.76 -29.94 -8.84 -6.15 -6.15 -15.24 -29.94 -30.90 -7.38 -12.32 -12.32 -15.37 -30.90 Metals & Mining 0.24 -38.93 -3.12 -2.11 -2.11 -29.53 -38.93 -39.77 -1.57 -8.55 -8.55 -29.63 -39.77 Independent Power Producers & Energy Traders 0.06 -41.38 -4.48 -9.25 -9.25 -36.23 -41.38 -42.18 -2.94 -15.22 -15.22 -36.33 -42.18 Source: Factset & Standard & Poor’s
- 10. 04 January 2016 10 Glossary of Indices Index Definition Dow Jones Industrial Average (DJIA) The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. It has been a widely followed indicator of the stock market since October 1, 1928. S&P 500 The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index was developed with a base level of 10 for the 1941-43 base period. S&P Industrials The S&P Industrials Index is comprised of the stocks representing the industrial sector of the S&P 500 and represents about 75 percent of the S&P 500 (exclusive of the utility, financial and transportation sectors). S&P GIC Utilities/ Financials In 1999, Standard & Poor’s and MSCI/Barra jointly developed the Global Industry Classification Standard (GICS®) to establish a global standard for categorizing companies into sectors and industries. GICS is used as a basis for S&P and MSCI indexes in which each company is assigned to a sub-industry, and to a corresponding industry, industry group and sector, according to the definition of its principal business activity. S&P Midcap 400 Measures the performance of 400 mid-size domestic stocks chosen for market size, liquidity and industry group representation. A mid-cap stock is broadly defined as a company with a market capitalization ranging from US$2 billion to US$10 billion. S&P Smallcap 600 The S&P 600 Index is an equity index representing 600 small-sized companies in various industries weighted by market capitalization. The index includes small cap stocks with market capitalization ranging from about US$300 million dollars to about US$2 billion. S&P Supercomposite 1500 Consists of the 1500 companies that comprise the S&P 500, the S&P mid-cap 400 and the S&P small-cap 600. S&P/Citigroup Growth A market-capitalization-weighted index consisting of those stocks within the S&P 500 Index that exhibit strong growth characteristics. The index is a numerical ranking system based on three growth factors and four value factors to determine the constituents and their weightings. S&P/Citigroup Value A market-capitalization-weighted index consisting of those stock within the S&P 500 Index that exhibit strong value characteristics. The index uses a numerical ranking system based on four value factors and three growth factors to determine the constituents and their weightings. Value Line Geometric Composite An equally weighted price index of all the stocks covered in The Value Line Investment Survey. Geometric refers to the geometric averaging technique that is used to compute the average. Geometric indices are not commonly used. A proxy for the market’s performance, the index is considered to represent the typical retail investor’s portfolio NASDAQ Composite The NASDAQ Composite Index is a broad-based capitalization-weighted index of stocks in all three NASDAQ tiers: Global Select, Global Market, and Capital Market. The index was developed with a base level of 100 as of February 5, 1971. NASDAQ Industrials Measures performance of NASDAQ-listed companies not in another NASDAQ index. Includes agricultural, mining, construction, manufacturing, retail and wholesale trade, services, and public administration enterprises, as well as health maintenance organizations and companies not included in NASDAQ’s Biotechnology Index. NASDAQ 100 The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies. Wiltshire 5000 The Wilshire 5000 Equity Index measures the performance of all U.S. headquartered equity securities with readily available price data. Over 7,000 capitalization weighted security returns are used to adjust the index. Russell 2000 Index The Russell 2000 Index is designed to measure the performance of the bottom 2,000 companies from a universe of 3,000 of the largest stocks in the U.S. This index is capitalization-weighted and includes only common stocks belonging to organizations domiciled in the U.S. and its territories and traded on the NYSE, NASDAQ or AMEX. The Russell 2000 Index is adjusted once per year, in June, to reflect changes in rankings and shares outstanding. MSCI EAFE Index The MSCI (Morgan Stanley Capital International Inc.) EAFE (Europe, Australia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. MSCI ACWI Index The MSCI (Morgan Stanley Capital International Inc.) All Country World Index (ACWI) is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of the developed & emerging markets. As of Jan 2012 the MSCI World Index consisted of large and mid cap representation across 23 Developed Markets (DM) & 23 Emerging Markets (EM) countries. MSCI World Index (Developed Market) The MSCI (Morgan Stanley Capital International Inc.) Developed Market World Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of the developed markets. As of Jan 2012 the MSCI World Index consisted of large and mid cap representation across 24 Developed Markets (DM) countries. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US. MSCI EM Index The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global markets, which consists of 26 emerging markets country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela.
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