UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2014
OR
¨ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________________ to __________________
Commission file number 033-63026
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
Morgan Stanley 401(k) Plan
c/o Morgan Stanley Benefits Department
1585 Broadway
Nineteenth Floor
New York, NY 10036
B. Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:
MORGAN STANLEY
1585 Broadway
New York, NY 10036
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | Morgan Stanley 401(k) Plan |
| | | | (Name of Plan) | |
| | | | | | |
| Date: | June 23, 2015 | | By: | /s/ Patricia Gould | |
| | | | | (Signature) | |
| | | | Name: | Patricia Gould | |
| | | | Title: | Morgan Stanley Global Head of Compensation and Benefits |
Morgan Stanley
401(k) Plan
Employer ID No: 20-8764829
Plan Number: 003
Financial Statements as of December 31, 2014 and 2013, and for the Year Ended December 31, 2014, and Supplemental Schedule as of December 31, 2014, and Report of Independent Registered Public Accounting Firm
MORGAN STANLEY 401(k) PLAN
TABLE OF CONTENTS
| | Page |
| | |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 |
| | |
| FINANCIAL STATEMENTS: | |
| | |
| Statements of Net Assets Available for Benefits as of December 31, 2014 and 2013 | 2 |
| | |
| Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2014 | 3 |
| | |
| Notes to Financial Statements as of December 31, 2014 and 2013, and for the Year Ended December 31, 2014 | 4–19 |
| | |
| SUPPLEMENTAL SCHEDULE — | |
| | |
| Form 5500, Schedule H, Line 4i — Schedule of Assets (Held at End of Year) as of December 31, 2014 | 21–48 |
| NOTE: | All other schedules required by section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended, have been omitted because they are not applicable. |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Plan Participants and Administrator of the
Morgan Stanley 401(k) Plan
New York, New York
We have audited the accompanying statements of net assets available for benefits of the Morgan Stanley 401(k) Plan (Plan) as of December 31, 2014 and 2013, and the related statement of changes in net assets available for benefits for the year ended December 31, 2014. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2014 and 2013, and the changes in net assets available for benefits for the year ended December 31, 2014 in conformity with U.S. generally accepted accounting principles.
The supplemental Schedule H, Line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2014 has been subjected to audit procedures performed in conjunction with the audit of the Morgan Stanley 401(k) Plan’s financial statements. The supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information presented in the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedule is fairly stated in all material respects in relation to the financial statements as a whole.
/s/ Crowe Horwath LLP
Crowe Horwath LLP
New York, New York
June 23, 2015
MORGAN STANLEY 401(k) PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2014 AND 2013
| ASSETS: | | 2014 | | 2013 |
| | | | | | | |
| Participant-directed investments, at fair value | | $ | 7,940,478,063 | | | $ | 7,128,480,923 | |
| | | | | | | | | |
| Receivables: | | | | | | | | |
| Employer contributions | | | 251,565,625 | | | | 240,086,284 | |
| Notes receivable from participants | | | 97,182,449 | | | | 87,417,179 | |
| Receivables for securities sold, and other | | | 37,261,107 | | | | 24,175,157 | |
| Total Receivables | | | 386,009,181 | | | | 351,678,620 | |
| | | | | | | | | |
| Total Assets | | | 8,326,487,244 | | | | 7,480,159,543 | |
| LIABILITIES: | | | | | | | | |
| Participant-directed derivative investments | | | 3,828,701 | | | | 1,288,403 | |
| Payables for securities purchased, and other | | | 90,010,546 | | | | 56,600,467 | |
| | | | | | | | | |
| Total Liabilities | | | 93,839,247 | | | | 57,888,870 | |
| | | | | | | | | |
| | | | | | | | | |
| NET ASSETS AVAILABLE FOR BENEFITS | | $ | 8,232,647,997 | | | $ | 7,422,270,673 | |
See notes to the financial statements.
MORGAN STANLEY 401(k) PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED DECEMBER 31, 2014
| ADDITIONS: | | | | |
| Net investment income: | | | | |
| Net appreciation in fair value investments | | $ | 554,975,578 | |
| Dividends | | | 50,001,855 | |
| Interest | | | 18,132,500 | |
| Net investment income | | | 623,109,933 | |
| | | | | |
| Contributions: | | | | |
| Employer contributions | | | 251,565,625 | |
| Participant contributions | | | 422,661,897 | |
| Rollover contributions | | | 41,372,821 | |
| Total contributions | | | 715,600,343 | |
| | | | | |
| | | | | |
| Interest income on notes receivable from participants | | | 3,878,453 | |
| | | | | |
| Total additions | | | 1,342,588,729 | |
| | | | | |
| | | | | |
| DEDUCTIONS: | | | | |
| Benefits paid to participants | | | 526,118,094 | |
| Administrative fees | | | 6,093,311 | |
| | | | | |
| Total deductions | | | 532,211,405 | |
| | | | | |
| | | | | |
| NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS | | | 810,377,324 | |
| | | | | |
| | | | | |
| NET ASSETS AVAILABLE FOR BENEFITS | | | | |
| Beginning of year | | | 7,422,270,673 | |
| | | | | |
| End of year | | $ | 8,232,647,997 | |
See notes to the financial statements.
MORGAN STANLEY 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013, AND FOR THE YEAR ENDED DECEMBER 31, 2014
| 1. | DESCRIPTION OF THE PLAN |
The following summary of the Morgan Stanley 401(k) Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for more complete information. Terms used in this description have the same meaning as in the Plan document.
General — The Plan is a profit-sharing plan that includes a “qualified cash or deferred arrangement” as described in Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Plan’s interest in the Morgan Stanley Stock Fund is designated as an employee stock ownership plan within the meaning of Code section 4975(e)(7) to the extent provided in the Plan.
Morgan Stanley & Co. LLC is a limited liability company whose sole member is Morgan Stanley Domestic Holdings, Inc. (the “Plan Sponsor”) - a corporation wholly owned by Morgan Stanley Capital Management, LLC, a limited liability company whose sole member is Morgan Stanley (the “Company”). The Company’s Chief Human Resources Officer or his or her delegate (“the Plan Administrator”) has the authority to control and manage the operation and administration of the Plan, make rules and regulations and take actions to administer the Plan. The Plan Administrator has delegated certain operational and administrative responsibilities to certain employees in the Company’s Human Resources department.
All of the Plan’s investments are held in a trust account (“trust account”) at The Northern Trust Company, N.A. (the “Trustee”).
Eligibility — U.S. benefits-eligible employees, generally defined as full-time and part-time employees (regularly scheduled to work at least 50% of the Company’s standard work week) of participating companies are eligible to participate in the Plan upon hire. Part-time employees regularly scheduled to work less than 50% of the Company’s standard work week are eligible to participate after completing one year of service and attaining age 21.
Eligible participants who terminate employment and are later rehired by a participating company may participate in the Plan immediately upon rehire. Individuals who are (a) classified by a participating company as non-U.S. benefits-eligible workers, interns, summer associates, contingent workers, leased workers, independent contractors or consultants, regardless of whether or not such classification is subsequently upheld for any purpose by a court or federal, state or local administrative authority; (b) covered by a collective bargaining agreement with respect to which a participating company is a party, unless such agreement provides for participation in the Plan; or (c) first hired or transferred to a participating company while in an hourly status on or after July 1, 2004, are not eligible to participate in the Plan.
Employee Contributions — Eligible participants may elect to contribute before-tax or Roth after-tax contributions of 1% to 30% of eligible pay subject to Code limits ($17,500 for 2014). Those participants who have attained at least age 50 by the end of the year may elect an additional before-tax or Roth after-tax “Catch-Up Contribution” of 1% to 30% of eligible pay, subject to Code limits ($5,500 for 2014).
Certain eligible participants may also elect to contribute non -Roth after-tax contributions of 1% to 30% of eligible earnings. Participants eligible to make non-Roth after-tax contributions include eligible employees considered to be non-highly compensated employees (for 2014, employees who earned less than $266,232 during 2013). Participants may also contribute amounts representing eligible rollover distributions from other qualified retirement plans, excluding other qualified plans sponsored by the Company and its affiliates. All contributions are subject to certain Code limitations.
Puerto Rico residents cannot make or receive contributions under the Plan.
Company Contributions — In addition to the eligibility requirements for each type of Company Contribution described below, to be eligible for Company Contributions for any given Plan Year, a participant must be actively at work or on an authorized leave of absence on December 31 or, during the year, have terminated employment because of retirement or Release, become totally and permanently disabled or died. Company Contributions are generally credited to participant accounts during the first quarter of the year following the calendar year for which the contribution amounts are determined.
Company Match: The Plan-provided Company Match for 2014 was one dollar for each dollar of before-tax or Roth after-tax contributions eligible participants contributed to the Plan up to a maximum of 4% of eligible pay up to the Code limit of $260,000. The maximum Company Match for 2014 was limited to $10,400. The Company Match is made at the discretion of the Plan Sponsor.
The 2014 Company Match contributions were invested according to each participant’s investment elections on file or in a default fund or funds, as selected by the Plan Administrator. The 2014 Company Match was $205,902,559, of which $5,400,124 was covered by forfeitures held by the trust account. The cash contribution was recorded as employer contributions receivable as of December 31, 2014 and paid by the Company to the Plan in January 2015. The 2013 Company Match of $193,866,526 was made in cash of which $5,668,918 was covered by forfeitures held by the trust account. The cash contribution was recorded as employer contributions receivable as of December 31, 2013 and paid by the Company to the Plan in January 2014.
Fixed Contribution: Eligible employees with annualized base pay and eligible annual pay of $100,000 or less and who are not employed as Financial Advisors, Producing Assistant Branch Managers, Producing Branch Managers, or Producing Sales Managers (or equivalent title), Advisory Directors or Senior Advisors (or equivalent title) as of December 31 and who are not Saxon employees of Morgan Stanley’s U.S. Residential Mortgage Business receive a Fixed Contribution of 2% of eligible pay regardless of whether they contribute to the Plan or receive a Company Match. The 2014 Fixed Contribution of $19,670,077 was recorded as employer contributions receivable as of December 31, 2014 and paid in cash by the Company in January 2015. The 2013 Fixed Contribution of $19,776,623 was recorded as employer contributions receivable as of December 31, 2013 and paid in cash by the Company in January 2014.
Citi Pension Transition Contributions: To be eligible for Citi Pension Transition Contributions, employees who transferred from Citigroup to the Company or its affiliates in connection with the formation of the Company’s wealth management business must have been notified by Citigroup that their prior plan benefit opportunity qualified them for transition contributions under the Citigroup 401(k) Plan and they must have been at least age 45 with five or more years of service, including prior Citigroup service, as of December 31, 2010. Citi Pension Transition Contributions may be available for up to 10 Plan Years, beginning with the 2011 Plan year, as determined by the Plan Sponsor, in its discretion.
The Citi Pension Transition Contributions are based on the one-time calculation Citigroup performed to determine the percentage of annual eligible pay for the annual transition contributions under the Citigroup 401(k) Plan. The 2014 Citi Pension Transition Contribution of $2,759,824 was recorded as employer contributions receivable as of December 31, 2014 and paid in cash by the Company in January 2015. The 2013 Citi Pension Transition Contribution of $2,864,273 was recorded as employer contributions receivable as of December 31, 2013 and paid in cash by the Company in January 2014.
Morgan Stanley Transition Contribution: Eligible employees are those who earned a Morgan Stanley pension benefit or received a 401(k) Plan Retirement Contribution during 2010 and at December 31, 2010 were employed by a participating company and at least age 45 with five or more years of service. Eligible employees receive a Morgan Stanley Transition Contribution regardless of whether or not they contribute to the Plan. Morgan Stanley Transition Contributions may be available under the Plan for up to 10 Plan Years as determined by the Plan Sponsor in its discretion, beginning with the 2011 Plan Year.
The Morgan Stanley Transition Contribution is based on a formula generally intended to provide 80% of (1) minus (2):
| 1. | Under the Plan provisions in effect in 2010: |
The estimated value of the benefit the employee would have earned under the Pension Plan (or what the employee would have received as a Retirement Contribution in the Plan), plus
The Company Match the employee would have received had the employee contributed 6% of eligible pay to the Plan (regardless of how much the employee actually contributed).
| 2. | Under the Plan provisions in effect during the applicable Plan year: |
The maximum Company Match available under the Plan (regardless of how much the employee actually contributed), plus
The employee’s Fixed Contribution for the Plan year, if applicable.
The 2014 Morgan Stanley Transition Contribution of $28,633,289 was recorded as employer contributions receivable as of December 31, 2014 and paid in cash by the Company in January 2015. The 2013 Morgan Stanley Transition Contribution of $29,247,780 was recorded as employer contributions receivable as of December 31, 2013 and paid in cash by the Company in January 2014.
Participant Accounts — Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contributions, allocations of the Company Contributions and Plan earnings, and charged with an allocation of Plan losses and administrative expenses not otherwise paid by the Plan Sponsor and reduced by the amount of any benefit payments to such participant. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
Investments — Participants direct the investment of their contributions into various investment options offered by the Plan, which are subject to change from time to time. As of December 31, 2014, the Plan offered 11 mutual funds, 13 commingled or collective trust funds, one employer stock fund, and eight separately managed accounts.
The Plan is intended to meet the requirements of Section 404(c) of ERISA, with the result that participants, and no other fiduciaries, are responsible for the investment of their Plan accounts.
Employer Stock Provisions — The Morgan Stanley Stock Fund is invested primarily in “employer securities” (as defined in the Code), is designated an employee stock ownership plan to the extent provided in the Plan, and is subject to additional plan provisions, including the ability of eligible participants to elect to receive current cash dividend distributions relating to the Morgan Stanley Stock Fund. Certain employees were not eligible to elect current cash dividend distributions relating to the Morgan Stanley Stock Fund prior to June 28, 2013.
Voting and Tender Rights — Each participant may direct a vote on shares of Company common stock in the Morgan Stanley Stock Fund that are allocated to his or her Plan account. Each participant is to be notified prior to the time that voting rights are to be exercised. Unvoted shares, including shares held in the Plan’s forfeiture account, are to be voted in the same proportion as the total actual votes cast for or against the matter under consideration. Similar rules apply to tender or other similar rights appurtenant to Company common stock, except that shares for which no tender direction is given by the participant will not be tendered. If there is a tender for less than all shares or if there are more tender directions than can be satisfied, participant shares are to be tendered on a pro rata basis.
Vesting — Participants are vested immediately in their Employee Contributions plus earnings thereon. Participants newly hired on or after January 1, 2004, are vested in any Company contributions upon the earlier of: (i) completion of three years of service, or (ii) termination of employment due to death, retirement, Release or Total and Permanent Disability, each as defined by the Plan. There is no partial vesting. A participant is always fully vested in dividends paid with respect to the Morgan Stanley Stock Fund.
Other — Certain reservists and persons who provide military service are entitled to additional rights under the Plan. Additional rules apply in the event that the Plan becomes top-heavy as described in the Code.
Forfeitures — Forfeitures are used to reduce the year-end Company Contributions and pay certain Plan expenses.
Notes Receivable from Participants — Generally, a participant may borrow up to the lesser of $50,000 or 50% of his/her vested Plan account. The loan is secured by the balance in the participant’s account and bears interest at a rate determined by the Plan Administrator. Fixed, Retirement and Transition Contributions are not eligible for loans. Each loan processed incurs a $75 administrative fee. Generally, principal and interest are paid ratably through payroll deductions back to the individual participant’s account. A participant may only have one outstanding loan at a time. Loans become due on termination of employment, except in the case of Release, in which case a participant may continue repayments for up to 12 months.
Domestic Relations Orders — Generally, participants who submit a domestic relations order for qualification incur a $750 qualification fee which is paid from the participant’s and alternate payee’s accounts.
Payment of Benefits — Participants may elect to receive all or a portion of their vested account balance following termination of employment.
Participants may withdraw any vested amount allocated to their accounts while in service after attaining age 59-1/2. In the event of a hardship (as defined in the Plan), participants regardless of age may withdraw their vested Employee and Company Contributions to the extent permitted by the Plan. Voluntary Employee Contributions made before 1984 and after-tax Employee Contributions made after 1983 also may be withdrawn in service without regard to the participant’s age, subject to Plan terms.
Payments are made in cash and/or in-kind in shares of Morgan Stanley stock at the direction of the participant. Non-hardship withdrawals are limited to eight per year.
A participant may elect to receive his or her vested interest in the Morgan Stanley Stock Fund in kind. Shares are recorded electronically in book entry form on the records of the Company’s transfer agent, Computershare, via its Direct Registration System (“DRS”) service.
Plan Termination — Although it has not expressed any intent to do so, the Plan Sponsor has the right under the Plan to terminate the Plan subject to the provisions of ERISA. In such event, participants become fully vested in any Company Contributions to the extent required by the Code.
| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Accounting — The Plan’s financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Use of Estimates — The preparation of financial statements requires Plan management to make estimates and assumptions regarding the valuation of certain financial instruments that affect the reported amounts of net assets available for benefits and changes therein. Actual results could differ from the estimates and assumptions used.
Administrative Expenses — Administrative expenses of the Plan are paid by the Plan, unless paid by the Plan Sponsor, as provided in the Plan document. The Plan Sponsor is under no obligation to pay the Plan’s administrative expenses.
Payment of Benefits — Benefit payments to participants are recorded upon distribution. All amounts allocated to participants who elected to withdraw from the Plan during the years ended December 31, 2014 and 2013 were paid prior to the respective year end.
Risks and Uncertainties — The Plan utilizes various investment options, including derivative instruments. Investments, in general, are exposed to various risks, such as interest rate, market liquidity and credit risks, as well as overall market volatility. Due to the level of risk associated with certain investments and the sensitivity of certain fair value estimates to changes in valuation assumptions, it is reasonably possible that changes in value of investments will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements.
Investment Valuation and Income Recognition — Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on an accrual basis. The cost of Plan investments is based on the average cost method for individual securities. Dividends are recorded on the ex-dividend date. Realized and unrealized gains and losses on the investments are reflected in Net investment income— Net appreciation in fair value investments, and include the Plan’s gains and losses on investments bought and sold as well as held during the year. Management fees and operating expenses charged to each of the investment options under the Plan are deducted from income earned and are not separately reflected on the statement of changes in net assets available for benefits. Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.
The Plan’s investments and derivative instruments are measured at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. (See Note 7).
In determining fair value, the Plan uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability that were developed based on market data obtained from sources independent of the Plan. Unobservable inputs are inputs that reflect the Plan’s assumptions about the assumptions other market participants would use in pricing the asset or liability that were developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows:
Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Plan has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.
Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
The availability of observable inputs can vary from product to product and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the product. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Plan in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.
The Plan considers prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or Level 2 to Level 3 of the fair value hierarchy. In addition, a downturn in market conditions could lead to declines in the valuation of many instruments.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level of the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Notes Receivable from Participants — Notes receivable from participants are measured at their unpaid principal balance. Interest is repaid monthly and any delinquent interest payments as of December 31, 2014 and 2013 were immaterial. Delinquent participant loans are recorded as distributions based on the terms of the Plan document.
Reclassifications — Certain reclassifications have been made to prior-period amounts to conform to the current year’s presentation.
The Plan’s individual investments at fair value that represented 5% or more of the Plan’s net assets available for benefits as of December 31, 2014 and 2013 are as follows:
| | | 2014 | | 2013 |
| Morgan Stanley Common Stock | | $ | 1,818,460,436 | | | $ | 1,528,493,017 | |
| BlackRock Liquidity FedFund | | | 624,325,485 | | | | 636,525,839 | |
| Mellon S&P 500 Index | | | 755,594,853 | | | | 572,266,048 | |
| MSIF Inc. Growth | | | 579,087,747 | | | | 554,127,823 | |
The Plan’s investments appreciated (depreciated) in value during 2014 as follows:
NET APPRECIATION IN FAIR VALUE INVESTMENTS
| Registered Investment Companies | | $ | (5,348,243 | ) |
| Equity investments | | | 477,155,403 | |
| U.S. government securities | | | 5,651,731 | |
| Municipal government obligations | | | 589,764 | |
| Foreign government obligations | | | (5,026,730 | ) |
| Fixed income investments | | | (5,604,602 | ) |
| Swaps/Options/Futures | | | (3,723,054 | ) |
| Other | | | (483,847 | ) |
| Collective Trusts | | | 91,765,156 | |
| | | | | |
| Net appreciation in fair value investments | | $ | 554,975,578 | |
| 4. | DERIVATIVE INSTRUMENTS AND REPURCHASE AGREEMENTS |
Derivative instruments are permitted in the Plan’s separately managed account (“Separate Account”) portfolio only to the extent that they comply with all of the Plan’s policy guidelines, and are consistent with the Plan’s risk and return objectives. In addition, derivative instruments may be used only if they are deemed to be more attractive than a similar direct investment in the underlying cash market, or if the investment vehicle is being used to manage the risk of the portfolio. Any use of derivative instruments may not result in exposure of the Plan to investment sectors that are otherwise prohibited under the investment guidelines.
The investment guidelines established with each Separate Account manager for the Plan set forth the guidelines for the commitments that an investment manager may make with respect to derivative instruments. This investment policy does not apply to unleveraged securitized pools of assets or instruments with structured payment characteristics. Within the scope of the investment guidelines, the Plan may be invested in futures, options, swaps and forward foreign currency contracts.
Market risk arises from adverse changes in the fair value of these contracts.
Futures and Options — The trust held certain futures contracts on Eurodollars in separately managed accounts at December 31, 2014 within the PIMCO Real Return and at December 31, 2013 within the PIMCO Real Return and PIMCO Core Fixed Income Portfolios. Both written and purchase options were used in the underlying investments. When the investment manager purchases or writes an option, an amount equal to the premium received or paid by the Plan is recorded as an asset or liability and is subsequently adjusted to the current market value of the option written or purchased. The fair value of these investments as of December 31, 2014 and 2013 was immaterial and the changes in fair value are accounted for as part of net appreciation in fair value of investments in the statement of changes in net assets available for benefits.
Swaps — Under the investment managers’ standard International Swap and Derivatives Association agreements, counterparty risk is limited by provisions which allow for the mutual exchange of collateral should a swap’s market value exceed $250,000. Further, the investment managers are instructed to restrict trading to only those counterparties with the largest capitalization and highest credit ratings in the industry. Investment manager policy is to execute swaps only with counterparties whose credit rating is A-/A3 or better, unless otherwise approved by the Plan. As of December 31, 2014 and 2013, the investment assets held by the Plan included positions in several interest rate swaps, where fixed rates were paid to counterparties in exchange for floating rates, and credit default swaps. These assets were held within the PIMCO Core Fixed Income and PIMCO Real Return separately managed accounts as of December 31, 2014 and the MSIM Emerging Market Debt SA, PIMCO Core Fixed Income and PIMCO Real Return separately managed accounts as of December 31, 2013. The Plan also had several positions in inflation swaps as of December 31, 2014 and 2013 within the PIMCO Real Return separately managed account. The fair value of these investments as of December 31, 2014 and 2013 was immaterial and the changes in fair value are accounted for as part of net appreciation in fair value of investments in the statement of changes in net assets available for benefits.
Forward Foreign Currency Contracts — The Plan may enter into forward foreign currency contracts in order to hedge certain foreign currency denominated investments. Forward foreign currency commitments are generally entered into with counterparties of high credit quality; therefore, the risk of nonperformance by the counterparties is considered negligible. Additionally, the Plan’s investment guidelines require that the forward foreign currency contracts be restricted in their application and used for economic hedging purposes. The Plan had positions in forward foreign currency contracts in the PIMCO Real Return separately managed account and the Pyramis Small Cap and Artisan Non-U.S. Growth collective trust accounts as of December 31, 2014, and the PIMCO Real Return and MSIM Emerging Market Debt SA separately managed accounts as of December 31, 2013. The fair value of these investments as of December 31, 2014 and 2013 was immaterial and the changes in fair value are accounted for as part of net appreciation in fair value of investments in the statement of changes in net assets available for benefits.
Securities sold under agreements to repurchase (“repurchase agreements”) — The investment manager, PIMCO, entered into several repurchase agreements. The fair value of these investments as of December 31, 2014 and 2013 was immaterial and the changes in fair value are accounted for as part of net appreciation in fair value of investments in the statement of changes in net assets available for benefits.
| 5. | EXEMPT PARTY-IN-INTEREST TRANSACTIONS |
As of December 31, 2014 and 2013, there were 33 and 35 investment options, respectively, available in the Plan, of which six and seven, respectively, were managed by Morgan Stanley Investment Management (“MSIM”), 26 and 27, respectively, were managed by third parties and one of which was an employer stock fund (the Morgan Stanley Stock Fund). Total party-in-interest investment options
amounted to $6,373,271,407 and $ 5,696,878,509 as of December 31, 2014 and 2013, respectively and accounted for $488,702,933 in net appreciation during the year ended December 31, 2014. All party-in-interest investment options are in the Morgan Stanley Stock Fund, Northern Trust Short-Term Investment Fund, the funds managed by Morgan Stanley Investment Management, an affiliate of the Plan Sponsor, and funds managed by PIMCO, Blackrock, Systematic, BlueBay, T. Rowe Price, Shenkman, Pyramis, Artisan and BNY Mellon.
As of December 31, 2014 and 2013, the Plan held 46,867,537 shares and 48,740,211 shares, respectively, of Morgan Stanley common stock with a fair value of $1,818,460,436 and $ 1,528,493,017, respectively. The Plan had dividend income of $16,827,559 on Morgan Stanley common stock for the year ended December 31, 2014. Eligible participants have the opportunity to elect to receive current cash payment of the dividends paid on the Morgan Stanley Stock Fund held within the Plan to the extent provided in the Plan.
Certain officers and employees of the Plan Sponsor (who may also be participants in the Plan) perform administrative services related to the operation, record keeping and financial reporting of the Plan. The Plan Sponsor pays these salaries and other administrative expenses on behalf of the Plan. Certain fees, including fees for the investment management services, to the extent not paid by the Plan Sponsor, are paid by the Plan. All direct and indirect fees paid by the Plan are considered party-in-interest transactions.
As of December 31, 2014 and 2013, the Plan held notes receivable from participants for participant loans of $97,182,449 and $87,417,179, respectively, which are considered party-in-interest transactions.
| 6. | FEDERAL INCOME TAX STATUS |
The Internal Revenue Service (the “IRS”) determined and informed the Plan Sponsor by a letter dated February 21, 2014, that the Plan and its related trust continue to be designed in accordance with the applicable provisions of the Code. The Plan has been amended since receiving this letter, however, the Plan Sponsor and the Plan Administrator believe the Plan is currently designed and operated in compliance with the applicable requirements of the Code.
The Plan Sponsor has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2014, there are no uncertain tax positions taken by the Plan that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits of the Plan for any tax periods in progress. The Plan Sponsor believes it is no longer subject to income tax examinations for years prior to 2011.
| 7. | FAIR VALUE MEASUREMENTS |
The following description of the valuation methods and assumptions used by the Plan to determine the fair values of investments apply to investments held directly by the Plan.
Registered Investment Companies (“RIC’s”) – Mutual funds are registered with the Securities and Exchange Commission and are intended to meet the requirements of the Investment Company Act of 1940 with respect to income distribution, fee structure, and diversification of assets. Mutual funds are generally marked to quoted prices or net asset value (“NAV”) and are categorized in Level 1 of the fair value hierarchy if based upon prices which are observable in an active market. The PIMCO Foreign Bond (Unhedged) fund requires the Trustee to calculate the fair value since the fund has a daily interest rate factor that pays a monthly dividend and therefore the fund is categorized as Level 2 of the fair value hierarchy. With the exception of the BlackRock Liquidity Funds - FedFund Institutional Portfolio
investment option which has no restrictions on sales, the Plan generally prohibits the sale of these investment options within 30 days of a purchase into that investment option.
Separately Managed Accounts – The Plan holds investments in the Morgan Stanley Stock Fund (“the Fund”) holding Morgan Stanley common stock and containing a short-term investment fund to facilitate participant transactions in and out of the Fund. There were no unfunded commitments and no restricted redemption notice periods. The Company has specific rules that govern employee transactions in Morgan Stanley stock. Employees may transact in Morgan Stanley stock (including the Fund) only during a window period. Shorter window periods and prior approval requirements apply to those employees deemed Access Persons (as defined in the Company’s employee trading policy) by the Company. Access Persons who are members of the Company’s Management or Operating Committees are prohibited from selling the Fund within six months of a purchase.
The remaining Separate Accounts are professionally managed portfolios of securities that buy investments owned by the trust account for the benefit of participants. The participants share in the appreciation and depreciation in proportion to their contribution to the account. Separate Accounts are administered and supervised by investment managers who decide how to invest funds contributed by investors. As of December 31, 2014 and 2013, the Plan’s Separate Accounts consisted of the Systematic Mid Cap Value Fund, the Shenkman Capital High Yield Bond Fund, the T. Rowe Price U.S. Large-Cap Value Fund, the PIMCO Core Fixed Income Fund and the PIMCO Real Return Fund. In addition, the BlueBay Emerging Market Select Debt Fund, the Pyramis Select International Small Cap Fund and the Artisan International Growth Fund Separate Accounts were introduced in 2014. The MSIM Emerging Markets Debt SA Fund was closed during 2014. The Trustee is responsible for determining the Separate Accounts’ fair value. Terms of the agreements with the investment managers (“Investment Management Agreements”) for the Separate Accounts permit the termination of the Investment Management Agreements and the distribution of the Separate Accounts’ securities at fair value. There were no unfunded commitments and no restricted redemption notice periods. The Plan generally prohibits the sale of these investment options within 30 days of a purchase into that investment option.
A description of the valuation methods and assumptions applied to the major categories of the Fund and the Separate Accounts measured at fair value are as follows:
Corporate equities
Corporate equities, including Morgan Stanley common stock, are exchange-traded equity securities that are generally valued based on quoted prices from a nationally recognized exchange. Valuation adjustments are not applied as they are actively traded and accordingly they are categorized in Level 1 of the fair value hierarchy.
Cash and cash equivalents
Cash and cash equivalents are valued at cost, which approximates fair value and are categorized in Level 1 of the fair value hierarchy.
U.S. government securities
U.S. government securities are composed of two main categories consisting of agency-issued debt and agency mortgage pass-through pooled securities. Callable agency-issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for identical or comparable securities. The fair value of agency mortgage pass-through pooled securities is model driven based on spreads of the comparable To Be Announced (“TBA”) security. Callable agency- issued debt securities and agency mortgage pass-through pooled securities are generally categorized in Level 2 of the fair value hierarchy.
Municipal government obligations
Municipal government obligations are valued using recently executed transactions, market price quotations and pricing models that factor in, where applicable, interest rates, bond or credit default swap spreads and volatility. These bonds are generally categorized in Level 2 of the fair value hierarchy.
Foreign sovereign government obligations
Foreign sovereign government obligations are valued using quoted prices in active markets when available. Bonds for which the fair value is determined based on a valuation model are categorized in Level 2 of the fair value hierarchy.
Corporate debt instruments
Corporate debt instruments are composed of corporate bonds and asset-backed securities.
The fair value of corporate bonds is determined using recently executed transactions, market price quotations (where observable), bond spreads or credit default swap spreads obtained from independent external parties such as vendors and brokers adjusted for any basis difference between cash and derivative instruments. The spread data used are for the same maturity as the bond. If the spread data do not reference the issuer, then data that reference a comparable issuer are used. When position-specific external price data are not observable, fair value is determined based on either benchmarking to similar instruments or cash flow models with yield curves, bond or single-name credit default swap spreads and recovery rates as significant inputs. Corporate bonds are categorized in Level 2 of the fair value hierarchy.
Asset-backed securities (“ABS”) may be valued based on price or spread data obtained from observed transactions or independent external parties such as vendors or brokers. When position-specific external price data are not observable, the valuation may require benchmarking to similar securities. ABS have been categorized in Level 2 of the fair value hierarchy.
Derivatives
Depending on the product and terms of the transaction, the fair value of over-the-counter (“OTC”) derivative products can be either observed or modeled using a series of techniques and model inputs from comparable benchmarks, including closed-form analytic formulas, such as the Black-Scholes option-pricing model, and simulation models or a combination thereof. Many pricing models do not entail material subjectivity and the pricing inputs are observed from actively quoted markets, as is the case for generic interest rate swaps, certain option contracts and certain credit default swaps. Interest rate and credit default swaps are valued using observable inputs and are generally categorized in Level 2 of the fair value hierarchy. Futures contracts and exchange traded swaps are valued based on quoted prices in active markets and are generally categorized in Level 1 of the fair value hierarchy. Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. Listed derivatives that are not actively traded are valued using the same approaches as those applied to OTC derivatives and are categorized in Level 2 of the fair value hierarchy.
Other assets and liabilities
The carrying values of Notes receivable from participants, Receivables for securities sold and others, and Payables for securities purchased and others, approximate their fair value due to their short-term duration and are categorized in Level 2 of the fair value hierarchy.
Collective Trust Funds – Each investment fund is administered and supervised by its respective investment manager who decides how to invest the contributed funds. Certain funds focus on Corporate Equities or Corporate Fixed Income investments. The Blended-Target Retirement funds have a mixture of underlying investments that the investment manager considers to be generally appropriate at the current time for a given retirement date. The Short-Term Investment Funds are maintained to facilitate transactions into and out of the Plan’s investment options and have a prime objective of principal preservation. The fair values of participating units held in the Collective Trust Funds are based on NAV’s reported by the investment manager as of the financial statement dates and recent transaction prices and therefore the Collective Trust Funds are categorized as Level 2 of the fair value hierarchy. If there is a fee accrual, the trustee is responsible for determining the fair value. As of December 31, 2014 and 2013, the Plan held investments in funds managed by BlackRock, Inc., Mellon and Northern Trust. The funds managed by Artisan and Pyramis were closed as Collective Trust Fund investment options during 2014, and were made available as Separate Account investment options. Terms of the applicable Collective Trust Fund Agreements and/or Investment Management Agreements permit the termination of the agreement and the receipt of the fund securities at fair value within 30 days. There were no unfunded commitments and no restricted redemption notice periods. Other than the funds managed by BlackRock, Inc., from which the Plan does not restrict the frequency of redemptions, the Plan generally prohibits the sale of the Collective Trust Fund investment options within 30 days of a purchase into that investment option.
The following tables set forth by level within the fair value hierarchy the Plan’s investment and derivative instrument assets and liabilities at fair value as of December 31, 2014 and 2013. There were no transfers of investments between levels for either year.
| | | Plan's Investment Assets and Liabilities at Fair Value as of December 31, 2014 |
| | | Quoted Prices in Active Markets for Identical Assets | | Significant Other Observable Inputs | | Significant Unobservable Inputs | | |
| | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| Investment Assets: | | | | | | | | |
| Registered Investment Companies | | | | | | | | |
| Equity Funds | | | | | | | | |
| Large-Cap | | $ | 579,087,747 | | | $ | - | | | $ | - | | | $ | 579,087,747 | |
| Emerging Markets | | | 299,067,718 | | | | - | | | | - | | | | 299,067,718 | |
| Mid-Cap | | | 294,449,060 | | | | - | | | | - | | | | 294,449,060 | |
| International | | | 252,213,574 | | | | - | | | | - | | | | 252,213,574 | |
| Small-Cap | | | 334,022,102 | | | | - | | | | - | | | | 334,022,102 | |
| Money Market Fund | | | 624,325,485 | | | | - | | | | - | | | | 624,325,485 | |
| Real Estate Investment Trust Fund | | | 182,539,621 | | | | - | | | | - | | | | 182,539,621 | |
| Fixed Income Funds | | | 73,830,329 | | | | 38,141,317 | | | | - | | | | 111,971,646 | |
| | | | 2,639,535,636 | | | | 38,141,317 | | | | - | | | | 2,677,676,953 | |
| | | | | | | | | | | | | | | | | |
| Separately Managed Accounts | | | | | | | | | | | | | | | | |
| Employer stock | | | 1,818,460,436 | | | | - | | | | - | | | | 1,818,460,436 | |
| Corporate equities | | | 901,546,362 | | | | - | | | | - | | | | 901,546,362 | |
| Cash and cash equivalents | | | 25,127,818 | | | | - | | | | - | | | | 25,127,818 | |
| U.S. government securities | | | - | | | | 181,938,192 | | | | - | | | | 181,938,192 | |
| Corporate debt instruments | | | - | | | | 145,923,342 | | | | - | | | | 145,923,342 | |
| Foreign sovereign government obligations | | | - | | | | 63,093,066 | | | | - | | | | 63,093,066 | |
| Commit to purchase agreements | | | - | | | | 23,900,000 | | | | - | | | | 23,900,000 | |
| Municipal government obligations | | | - | | | | 5,448,989 | | | | - | | | | 5,448,989 | |
| Derivative investments | | | - | | | | 2,443,864 | | | | - | | | | 2,443,864 | |
| Stapled Securities | | | - | | | | 1,144,158 | | | | - | | | | 1,144,158 | |
| | | | 2,745,134,616 | | | | 423,891,611 | | | | - | | | | 3,169,026,227 | |
| | | | | | | | | | | | | | | | | |
| Collective Trusts | | | | | | | | | | | | | | | | |
| Corporate Equity Funds | | | - | | | | 1,014,961,913 | | | | - | | | | 1,014,961,913 | |
| Blended - Target Retirement | | | | | | | | | | | | | | | | |
| Corporate Equity Funds | | | - | | | | 823,856,615 | | | | - | | | | 823,856,615 | |
| Fixed Income Funds | | | - | | | | 152,895,066 | | | | - | | | | 152,895,066 | |
| Corporate Fixed Income Funds | | | - | | | | 87,273,617 | | | | - | | | | 87,273,617 | |
| Short-Term Investment Funds | | | - | | | | 14,787,672 | | | | - | | | | 14,787,672 | |
| | | | - | | | | 2,093,774,883 | | | | - | | | | 2,093,774,883 | |
| | | | | | | | | | | | | | | | | |
| Participant-directed investments | | $ | 5,384,670,252 | | | $ | 2,555,807,811 | | | $ | - | | | $ | 7,940,478,063 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Investment Liabilities: | | | | | | | | | | | | | | | | |
| Participant-directed derivative investments | | $ | (610,004 | ) | | $ | (3,218,697 | ) | | $ | - | | | $ | (3,828,701 | ) |
| | | Plan's Investment Assets and Liabilities at Fair Value as of December 31, 2013 |
| | | Quoted Prices in Active Markets for Identical Assets | | Significant Other Observable Inputs | | Significant Unobservable Inputs | | |
| | | | | | | | | |
| | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| Investment Assets: | | | | | | | | |
| Registered Investment Companies | | | | | | | | |
| Equity Funds | | | | | | | | |
| Large-Cap | | $ | 554,127,823 | | | $ | - | | | $ | - | | | $ | 554,127,823 | |
| Emerging Markets | | | 321,278,099 | | | | - | | | | - | | | | 321,278,099 | |
| Mid-Cap | | | 307,961,129 | | | | - | | | | - | | | | 307,961,129 | |
| International | | | 275,883,474 | | | | - | | | | - | | | | 275,883,474 | |
| Small-Cap | | | 370,686,087 | | | | - | | | | - | | | | 370,686,087 | |
| Money Market Fund | | | 636,525,839 | | | | - | | | | - | | | | 636,525,839 | |
| Real Estate Investment Trust Fund | | | 148,441,763 | | | | - | | | | - | | | | 148,441,763 | |
| Fixed Income Funds | | | 60,700,960 | | | | 38,472,837 | | | | - | | | | 99,173,797 | |
| Commodity Fund | | | 13,090,647 | | | | - | | | | - | | | | 13,090,647 | |
| | | | 2,688,695,821 | | | | 38,472,837 | | | | - | | | | 2,727,168,658 | |
| | | | | | | | | | | | | | | | | |
| Separately Managed Accounts | | | | | | | | | | | | | | | | |
| Employer stock | | | 1,528,493,017 | | | | - | | | | - | | | | 1,528,493,017 | |
| Corporate equities | | | 581,753,187 | | | | - | | | | - | | | | 581,753,187 | |
| Cash and cash equivalents | | | 24,983,403 | | | | - | | | | - | | | | 24,983,403 | |
| U.S. government securities | | | - | | | | 186,189,695 | | | | - | | | | 186,189,695 | |
| Municipal government obligations | | | - | | | | 5,053,078 | | | | - | | | | 5,053,078 | |
| Foreign sovereign government obligations | | | - | | | | 62,213,762 | | | | - | | | | 62,213,762 | |
| Corporate debt instruments | | | - | | | | 147,609,226 | | | | - | | | | 147,609,226 | |
| Derivatives | | | - | | | | 1,784,302 | | | | - | | | | 1,784,302 | |
| Other | | | - | | | | 1,100,000 | | | | - | | | | 1,100,000 | |
| | | | 2,135,229,607 | | | | 403,950,063 | | | | - | | | | 2,539,179,670 | |
| | | | | | | | | | | | | | | | | |
| Collective Trusts | | | | | | | | | | | | | | | | |
| Corporate Equity Funds | | | - | | | | 983,649,563 | | | | - | | | | 983,649,563 | |
| Corporate Fixed Income Funds | | | - | | | | 75,312,409 | | | | - | | | | 75,312,409 | |
| Blended - Target Retirement | | | | | | | | | | | | | | | | |
| Corporate Equity Funds | | | - | | | | 636,593,672 | | | | - | | | | 636,593,672 | |
| Fixed Income Funds | | | - | | | | 151,870,265 | | | | - | | | | 151,870,265 | |
| Short-Term Investment Funds | | | - | | | | 14,706,686 | | | | - | | | | 14,706,686 | |
| | | | - | | | | 1,862,132,595 | | | | - | | | | 1,862,132,595 | |
| | | | | | | | | | | | | | | | | |
| Participant-directed investments | | $ | 4,823,925,428 | | | $ | 2,304,555,495 | | | $ | - | | | $ | 7,128,480,923 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Investment Liabilities: | | | | | | | | | | | | | | | | |
| Participant-directed derivative investments | | $ | (7,000 | ) | | $ | (1,281,403 | ) | | $ | - | | | $ | (1,288,403 | ) |
Until January 6, 2015, affiliates of the Plan held ownership interests in a foreign entity that was determined to be an associated entity of Crowe Horwath LLP (“Crowe”), the Plan’s independent registered public accounting firm, for purposes of applying the independence rules of the Securities and Exchange Commission (“SEC”). All outstanding shares of the foreign entity were acquired by a private company through a binding share purchase transaction on January 6, 2015. The Plan did not at any time hold an ownership interest in Crowe. After review of the facts and circumstances, Crowe has concluded that it was and is capable of exercising objective and impartial judgment on all matters encompassed within audit engagements for the Plan’s financial statements, and that a reasonable investor with knowledge of all relevant facts and circumstances would reach the same conclusion. Plan management and those charged with governance have reviewed the facts and circumstances, and determined that a reasonable investor with knowledge of all the relevant facts and circumstances would conclude that Crowe was and is capable of exercising objective and impartial judgment during the audits of the Plan’s financial statements.
SUPPLEMENTAL SCHEDULE
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Mutual funds (RIC's) | | | | |
| * | MSIF | Cap Growth; 14,882,749 shares | | | $ 579,087,747 |
| * | MSIF | Emerging Mkts I Fund; 13,508,027 shares | | | 299,067,718 |
| * | MSIF | Mid Cap Growth; 7,479,021 shares | | | 294,449,060 |
| * | MSIF | International Equity I; 16,303,398 shares | | | 252,213,574 |
| | Royce | Special Equity Fund; 8,267,856 shares | | | 187,763,008 |
| * | MSIF | Small Company Growth I; 8,853,456 shares | | | 146,259,094 |
| * | Blackrock | Liquidity Fds; 624,325,485 shares | | | 624,325,485 |
| * | MSIF | Global Real Estate I Fund; 16,430,209 shares | | | 182,539,621 |
| * | PIMCO | Banc Amer Re-Remic Tr 2010-5 Due 02-17-2051 | | | 44,952,472 |
| * | PIMCO | Selkirk No 2 Ltd Nt 1.183 Due 02-20-2041 | | | 38,141,317 |
| | Eaton Vance | Global Macro Absolute Ret Fund; 3,101,811 shares | | | 28,877,857 |
| | | | | | |
| | Employer stock | | | | |
| * | Morgan Stanley | 46,867,537 Shares of Employer Common Stock | | | 1,818,460,436 |
| | | | | | |
| | Common stock | | | | |
| | 3M Co Com | 74,100 Shares of Common Stock | | | 12,176,112 |
| | 5Th 3Rd Bancorp Com | 182,696 Shares of Common Stock | | | 3,722,431 |
| | Aalberts Inds | 13,700 Shares of Common Stock | | | 406,734 |
| | Aareal Bank | 15,901 Shares of Common Stock | | | 640,533 |
| | Ablynx N.V. | 22,300 Shares of Common Stock | | | 243,936 |
| | Actelion Ltd | 15,181 Shares of Common Stock | | | 1,761,555 |
| | Adelaide Brighton | 72,813 Shares of Common Stock | | | 212,724 |
| | Adr Alibaba Group Hldg Ltd | 3,787 Shares of Common Stock | | | 393,621 |
| | Adr Ambev Sa | 32,912 Shares of Common Stock | | | 204,713 |
| | Adr Baidu Inc | 32,953 Shares of Common Stock | | | 7,512,295 |
| | Adr Grifols S A | 16,194 Shares of Common Stock | | | 550,434 |
| | Adr Grupo Televisa Sa | 112,839 Shares of Common Stock | | | 3,843,296 |
| | Adr Royal Dutch Shell PLC | 77,200 Shares of Common Stock | | | 5,168,540 |
| | Aeon Delight Co.Ltd. | 20,500 Shares of Common Stock | | | 482,172 |
| | Aeon Financial Service Co Ltd | 14,500 Shares of Common Stock | | | 290,496 |
| | Aercap Holdings | 22,340 Shares of Common Stock | | | 867,239 |
| | Aes Corp | 632,000 Shares of Common Stock | | | 8,702,640 |
| | Aia Group Ltd | 832,000 Shares of Common Stock | | | 4,629,464 |
| | Akastor | 29,200 Shares of Common Stock | | | 84,123 |
| | Aker Solutions | 36,500 Shares of Common Stock | | | 202,276 |
| | Albioma | 10,300 Shares of Common Stock | | | 205,523 |
| | Alcoa Inc | 98,550 Shares of Common Stock | | | 1,556,105 |
| | Allianz Se (Se Societas Europeae) | 7,718 Shares of Common Stock | | | 1,282,734 |
| | Allied World Assurance Company | 19,475 Shares of Common Stock | | | 738,492 |
| | Allison Transmission Holding | 63,125 Shares of Common Stock | | | 2,139,938 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | Allstate Corp | 119,200 Shares of Common Stock | | | $ 8,373,800 |
| | Alten | 18,300 Shares of Common Stock | | | 782,787 |
| | Amer Sports Corp | 36,300 Shares of Common Stock | | | 705,433 |
| | Ameren Corp | 29,685 Shares of Common Stock | | | 1,369,369 |
| | American Airlines Inc | 15,185 Shares of Common Stock | | | 814,372 |
| | American Eagle Outfitters Inc | 76,475 Shares of Common Stock | | | 1,061,473 |
| | American Express Co | 78,400 Shares of Common Stock | | | 7,294,336 |
| | Ameriprise Finl Inc | 46,200 Shares of Common Stock | | | 6,109,950 |
| | Amgen Inc | 52,944 Shares of Common Stock | | | 8,433,450 |
| | Amplifon | 95,100 Shares of Common Stock | | | 564,332 |
| | Anadarko Petro Corp | 15,400 Shares of Common Stock | | | 1,270,500 |
| | Anheuser-Busch Inbev | 24,499 Shares of Common Stock | | | 2,782,481 |
| | Ansaldo Sts | 26,100 Shares of Common Stock | | | 263,081 |
| | Anthem Inc | 12,430 Shares of Common Stock | | | 1,562,078 |
| | Apache Corp | 157,500 Shares of Common Stock | | | 9,870,525 |
| | Arkema | 8,000 Shares of Common Stock | | | 533,100 |
| | Arris Group Inc | 18,650 Shares of Common Stock | | | 563,044 |
| | Ashmore Group | 93,100 Shares of Common Stock | | | �� 406,465 |
| | Asml Holding | 40,583 Shares of Common Stock | | | 4,395,118 |
| | Asos PLC | 5,400 Shares of Common Stock | | | 216,898 |
| | AT&T Inc | 166,500 Shares of Common Stock | | | 5,592,735 |
| | Atmos Energy Corp | 27,100 Shares of Common Stock | | | 1,510,554 |
| | Atos | 3,495 Shares of Common Stock | | | 280,391 |
| | Atresmedia Corp | 30,500 Shares of Common Stock | | | 429,592 |
| | Autoliv Inc | 1,920 Shares of Common Stock | | | 205,410 |
| | Avon Products Inc | 239,634 Shares of Common Stock | | | 2,250,163 |
| | Azbil Corp | 15,800 Shares of Common Stock | | | 367,672 |
| | Babcock Intl Group | 42,077 Shares of Common Stock | | | 694,139 |
| | Baker Hughes Inc | 75,255 Shares of Common Stock | | | 4,219,548 |
| | Balfour Beatty | 88,500 Shares of Common Stock | | | 292,546 |
| | Baloise Holding | 5,690 Shares of Common Stock | | | 731,829 |
| | Bank Of America Corp | 896,800 Shares of Common Stock | | | 16,043,752 |
| | Bayer Ag | 39,346 Shares of Common Stock | | | 5,380,001 |
| | Bba Aviation PLC | 65,100 Shares of Common Stock | | | 365,426 |
| | Bca Pop Emilia Rom E | 20,700 Shares of Common Stock | | | 136,888 |
| | Bed Bath & Beyond Inc | 6,300 Shares of Common Stock | | | 479,871 |
| | Beiersdorf | 20,118 Shares of Common Stock | | | 1,641,258 |
| | Beijing Enterprise | 241,300 Shares of Common Stock | | | 1,891,853 |
| | Biomed Rlty Tr Inc | 75,000 Shares of Common Stock | | | 1,615,500 |
| | Bloomin Brands Inc | 14,275 Shares of Common Stock | | | 353,449 |
| | Bodycote PLC | 37,100 Shares of Common Stock | | | 374,567 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | Boeing Co | 48,700 Shares of Common Stock | | | $ 6,330,026 |
| | Booz Allen Hamilton Hldg Corp | 19,425 Shares of Common Stock | | | 515,345 |
| | Boston Scientific Corp | 86,775 Shares of Common Stock | | | 1,149,769 |
| | Bqe Cant Vaudoise | 820 Shares of Common Stock | | | 444,805 |
| | Brammer | 47,000 Shares of Common Stock | | | 250,267 |
| | Bridgestone Corp | 4,587 Shares of Common Stock | | | 160,647 |
| | Britvic | 61,000 Shares of Common Stock | | | 641,546 |
| | Broadcom Corp | 30,860 Shares of Common Stock | | | 1,337,164 |
| | Bt Group | 278,932 Shares of Common Stock | | | 1,746,223 |
| | Canadian Pacific Railway Ltd | 48,200 Shares of Common Stock | | | 9,287,658 |
| | Capcom Co Ltd | 23,600 Shares of Common Stock | | | 357,459 |
| | Carnival Corp | 298,200 Shares of Common Stock | | | 13,517,406 |
| | Castellum | 43,400 Shares of Common Stock | | | 676,925 |
| | Catlin Group | 73,800 Shares of Common Stock | | | 772,137 |
| | Cbl & Assoc Pptys Inc | 36,750 Shares of Common Stock | | | 713,685 |
| | Cbre Group Inc | 55,450 Shares of Common Stock | | | 1,899,163 |
| | Cdn Nat Res Ltd | 52,700 Shares of Common Stock | | | 1,627,376 |
| | Celanese Corp | 17,860 Shares of Common Stock | | | 1,070,886 |
| | Celanese Corp | 218,800 Shares of Common Stock | | | 13,119,248 |
| | Challenger Ltd | 68,746 Shares of Common Stock | | | 367,367 |
| | Check Pt Software Technologies | 15,935 Shares of Common Stock | | | 1,252,013 |
| | Chevron Corp | 84,471 Shares of Common Stock | | | 9,475,957 |
| | China Mobile Ltd | 203,500 Shares of Common Stock | | | 2,374,869 |
| | Chiyoda Co Ltd | 16,300 Shares of Common Stock | | | 322,479 |
| | Chiyoda Corp | 39,000 Shares of Common Stock | | | 327,236 |
| | Cisco Systems Inc | 252,200 Shares of Common Stock | | | 7,014,943 |
| | Cit Group Inc | 23,115 Shares of Common Stock | | | 1,105,590 |
| | Cms Energy Corp | 3,975 Shares of Common Stock | | | 138,131 |
| | Cognizant Tech Solutions Corp | 32,291 Shares of Common Stock | | | 1,700,444 |
| | Comcast Corp | 116,238 Shares of Common Stock | | | 6,742,966 |
| | Compugroup Medical | 23,900 Shares of Common Stock | | | 575,512 |
| | Consol Energy Inc | 69,100 Shares of Common Stock | | | 2,336,271 |
| | Con-Way Inc | 15,925 Shares of Common Stock | | | 783,192 |
| | Corelogic Inc | 13,550 Shares of Common Stock | | | 428,044 |
| | Croda Intl | 3,400 Shares of Common Stock | | | 141,125 |
| | Croda Intl | 45,829 Shares of Common Stock | | | 1,902,235 |
| | Crown Hldgs Inc | 7,055 Shares of Common Stock | | | 359,099 |
| | Cts Eventim | 7,290 Shares of Common Stock | | | 216,121 |
| | Dah Sing Financial | 67,600 Shares of Common Stock | | | 394,450 |
| | Dairy Crest Group | 86,818 Shares of Common Stock | | | 675,501 |
| | Daiwa Office Investment Corp | 82 Shares of Common Stock | | | 460,286 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | DCC | 16,200 Shares of Common Stock | | | $ 897,482 |
| | De Longhi | 27,500 Shares of Common Stock | | | 498,147 |
| | Deckers Outdoor Corp | 9,870 Shares of Common Stock | | | 898,565 |
| | Delta Air Lines Inc | 5,865 Shares of Common Stock | | | 288,499 |
| | Deutsche Post | 58,731 Shares of Common Stock | | | 1,922,019 |
| | Deutsche Wohnen | 6,700 Shares of Common Stock | | | 158,742 |
| | Deutz | 38,900 Shares of Common Stock | | | 188,284 |
| | Dgb Financial Group | 17,568 Shares of Common Stock | | | 180,611 |
| | Diageo PLC | 4,600 Shares of Common Stock | | | 132,585 |
| | Discover Finl Svcs | 14,600 Shares of Common Stock | | | 956,154 |
| | Donnelley R R & Sons Co | 39,100 Shares of Common Stock | | | 657,076 |
| | Dowa Holdings Co Ltd | 39,000 Shares of Common Stock | | | 313,900 |
| | Drax Group | 31,200 Shares of Common Stock | | | 224,075 |
| | Dte Energy Co | 9,125 Shares of Common Stock | | | 788,126 |
| | Dufry | 2,720 Shares of Common Stock | | | 407,870 |
| | Dupont Fabros Tech Inc | 38,875 Shares of Common Stock | | | 1,292,205 |
| | Dynegy Inc | 23,550 Shares of Common Stock | | | 714,743 |
| | Electr Arts | 20,765 Shares of Common Stock | | | 976,266 |
| | Elementis | 94,700 Shares of Common Stock | | | 386,576 |
| | Elringklinger | 9,300 Shares of Common Stock | | | 324,044 |
| | Emerson Electric Co | 51,800 Shares of Common Stock | | | 3,197,614 |
| | Encana Corp | 49,715 Shares of Common Stock | | | 689,547 |
| | Entergy Corp | 91,454 Shares of Common Stock | | | 8,000,396 |
| | Eqt Corp | 59,300 Shares of Common Stock | | | 4,489,010 |
| | Euler Hermes Group | 4,500 Shares of Common Stock | | | 466,329 |
| | Eurocommercial | 12,276 Shares of Common Stock | | | 522,435 |
| | Euronav | 19,900 Shares of Common Stock | | | 249,710 |
| | Exedy Corp | 10,800 Shares of Common Stock | | | 262,400 |
| | Exelon Corp | 184,500 Shares of Common Stock | | | 6,841,260 |
| | Exelon Corp | 29,990 Shares of Common Stock | | | 1,112,029 |
| | Exxon Mobil Corp | 112,900 Shares of Common Stock | | | 10,437,605 |
| | Ezchip Semiconduct | 8,508 Shares of Common Stock | | | 164,849 |
| | F5 Networks Inc | 4,195 Shares of Common Stock | | | 547,301 |
| | Fagron | 4,500 Shares of Common Stock | | | 189,058 |
| | Fidessa Group | 12,400 Shares of Common Stock | | | 462,099 |
| | Finmeccanica Spa | 44,800 Shares of Common Stock | | | 419,316 |
| | Firstenergy Corp | 69,100 Shares of Common Stock | | | 2,694,209 |
| | Foot Locker Inc | 21,730 Shares of Common Stock | | | 1,220,791 |
| | Fortune R/Est Inv | 271,000 Shares of Common Stock | | | 273,976 |
| | FP Corp N | 12,000 Shares of Common Stock | | | 387,839 |
| | Fuchs Petrolub Se | 20,800 Shares of Common Stock | | | 838,003 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | G8 Education Ltd | 72,315 Shares of Common Stock | | | $ 246,776 |
| | Gagfah | 12,800 Shares of Common Stock | | | 286,540 |
| | Gam Holding Ltd | 27,014 Shares of Common Stock | | | 489,359 |
| | Gannett Inc | 27,250 Shares of Common Stock | | | 870,092 |
| | Gatx Corp | 22,100 Shares of Common Stock | | | 1,271,634 |
| | Gea Group | 21,445 Shares of Common Stock | | | 949,753 |
| | Gem Diamonds | 84,900 Shares of Common Stock | | | 231,335 |
| | Gen Mtrs Co | 192,400 Shares of Common Stock | | | 6,716,684 |
| | General Electric Co | 619,163 Shares of Common Stock | | | 15,646,249 |
| | Genting Hong Kong | 974,000 Shares of Common Stock | | | 340,900 |
| | Gfk Se | 6,700 Shares of Common Stock | | | 275,609 |
| | Gimv | 6,500 Shares of Common Stock | | | 299,158 |
| | Glory Ltd | 11,600 Shares of Common Stock | | | 316,377 |
| | Gmo Internet Inc | 37,900 Shares of Common Stock | | | 324,961 |
| | Gn Store Nord | 15,500 Shares of Common Stock | | | 339,533 |
| | Goldcrest Co Ltd | 10,100 Shares of Common Stock | | | 188,783 |
| | Grand City Property | 25,200 Shares of Common Stock | | | 371,103 |
| | Great Portland Estates | 45,500 Shares of Common Stock | | | 523,581 |
| | Grifols | 18,034 Shares of Common Stock | | | 722,746 |
| | GS Retail Co Ltd | 15,024 Shares of Common Stock | | | 350,603 |
| | Halyard Health Inc | 2,025 Shares of Common Stock | | | 92,077 |
| | Hamakyorex Co Ltd | 4,000 Shares of Common Stock | | | 124,109 |
| | Hanesbrands Inc | 6,165 Shares of Common Stock | | | 688,137 |
| | Harley Davidson | 13,295 Shares of Common Stock | | | 876,273 |
| | Hartford Finl Svcs Group Inc | 47,195 Shares of Common Stock | | | 1,967,560 |
| | Haulotte Group | 20,200 Shares of Common Stock | | | 305,782 |
| | Havas | 26,500 Shares of Common Stock | | | 216,672 |
| | Hca Hldgs Inc | 23,955 Shares of Common Stock | | | 1,758,057 |
| | Henkel Ag & Co | 15,826 Shares of Common Stock | | | 1,712,416 |
| | Hess Corp | 81,900 Shares of Common Stock | | | 6,045,858 |
| | Hikma Pharmaceutic | 31,017 Shares of Common Stock | | | 957,109 |
| | Hitachi Cap Corp | 19,600 Shares of Common Stock | | | 437,136 |
| | Hologic Inc | 43,625 Shares of Common Stock | | | 1,166,532 |
| | Honeywell Intl Inc | 72,600 Shares of Common Stock | | | 7,254,192 |
| | Hulic Company Ltd | 19,300 Shares of Common Stock | | | 194,940 |
| | Huntsman Corp | 50,600 Shares of Common Stock | | | 1,152,668 |
| | Ig Group Hldgs Ord Gbp0.00005 | 33,700 Shares of Common Stock | | | 377,811 |
| | IHI Corporation | 608,100 Shares of Common Stock | | | 3,129,386 |
| | Iida Group Ltd | 34,800 Shares of Common Stock | | | 428,995 |
| | Ill Tool Wks Inc | 58,100 Shares of Common Stock | | | 5,502,070 |
| | Inchcape | 28,500 Shares of Common Stock | | | 322,180 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | Incitec Pivot | 173,083 Shares of Common Stock | | | $ 451,840 |
| | Independence Group | 60,388 Shares of Common Stock | | | 218,924 |
| | Industrial & Commercial Bank | 1,347,000 Shares of Common Stock | | | 983,129 |
| | Informa PLC | 46,862 Shares of Common Stock | | | 344,012 |
| | Ingenico | 2,489 Shares of Common Stock | | | 262,871 |
| | Ingersoll-Rand PLC | 56,300 Shares of Common Stock | | | 3,568,857 |
| | Integrated Device Technology Inc | 24,150 Shares of Common Stock | | | 473,340 |
| | Intercontl Hotels | 31,619 Shares of Common Stock | | | 1,279,385 |
| | Internet Comm | 16,700 Shares of Common Stock | | | 343,764 |
| | Interpump Group | 23,300 Shares of Common Stock | | | 328,462 |
| | Intl Paper Co | 183,500 Shares of Common Stock | | | 9,831,930 |
| | Intrum Justitia Nv | 9,000 Shares of Common Stock | | | 266,726 |
| | Invesco Ltd | 32,425 Shares of Common Stock | | | 1,281,436 |
| | Invesco Ltd | 134,300 Shares of Common Stock | | | 5,307,536 |
| | Ipsos | 15,000 Shares of Common Stock | | | 430,445 |
| | Itt Corporation W/I | 23,025 Shares of Common Stock | | | 931,592 |
| | James Hardie Industries PLC | 29,173 Shares of Common Stock | | | 315,133 |
| | Johnson & Johnson | 112,500 Shares of Common Stock | | | 11,764,125 |
| | Johnson Matthey | 54,328 Shares of Common Stock | | | 2,877,630 |
| | Jpmorgan Chase & Co | 344,603 Shares of Common Stock | | | 21,565,256 |
| | Jungheinrich Non-Vtg | 11,000 Shares of Common Stock | | | 704,527 |
| | Jyske Bank | 6,800 Shares of Common Stock | | | 345,649 |
| | Kawasaki Heavy Ind | 134,300 Shares of Common Stock | | | 619,441 |
| | Kddi Corp | 31,100 Shares of Common Stock | | | 1,980,989 |
| | Kellogg Co | 61,900 Shares of Common Stock | | | 4,050,736 |
| | Kepco Plant Service & Engineering | 3,883 Shares of Common Stock | | | 281,559 |
| | Kintetsu World Exp | 13,300 Shares of Common Stock | | | 514,717 |
| | Kohls Corp | 137,758 Shares of Common Stock | | | 8,408,748 |
| | Konecranes Oyj | 15,100 Shares of Common Stock | | | 435,233 |
| | Korean Reinsurance | 47,384 Shares of Common Stock | | | 465,585 |
| | Kudelski Sa | 20,737 Shares of Common Stock | | | 252,521 |
| | Lab Corp Amer Hldgs | 7,285 Shares of Common Stock | | | 786,052 |
| | Lam Resh Corp | 5,675 Shares of Common Stock | | | 450,255 |
| | Level 3 Communications Inc | 31,660 Shares of Common Stock | | | 1,563,371 |
| | Liberty Global PLC | 78,676 Shares of Common Stock | | | 3,800,838 |
| | Liberty Global PLC | 47,364 Shares of Common Stock | | | 2,377,910 |
| | Liberty Ppty Tr | 51,325 Shares of Common Stock | | | 1,931,360 |
| | Lifestyle Internat | 257,000 Shares of Common Stock | | | 540,854 |
| | Lig Non-Life Insurance Co Ltd | 9,992 Shares of Common Stock | | | 249,084 |
| | Lincoln Natl Corp | 23,135 Shares of Common Stock | | | 1,334,195 |
| | Linde Ag | 23,375 Shares of Common Stock | | | 4,361,535 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | Lixil Group Corporation | 53,200 Shares of Common Stock | | | $ 1,133,265 |
| | Lloyds Banking Gp | 858,972 Shares of Common Stock | | | 1,015,497 |
| | Lockheed Martin Corp | 15,100 Shares of Common Stock | | | 2,907,807 |
| | Lonza Group Ag | 2,725 Shares of Common Stock | | | 307,699 |
| | L'Oreal | 5,756 Shares of Common Stock | | | 970,231 |
| | Lowes Cos Inc | 293,600 Shares of Common Stock | | | 20,199,680 |
| | Lvmh Moet Hennessy L. Vuitton | 5,862 Shares of Common Stock | | | 938,091 |
| | Macys Inc | 5,380 Shares of Common Stock | | | 353,735 |
| | Magna International Inc | 8,735 Shares of Common Stock | | | 949,407 |
| | Marsh & Mclennan Co'S Inc | 215,153 Shares of Common Stock | | | 12,315,358 |
| | Mednax Inc | 11,640 Shares of Common Stock | | | 769,520 |
| | Meggitt | 71,127 Shares of Common Stock | | | 575,596 |
| | Meitec Corporation | 14,100 Shares of Common Stock | | | 421,018 |
| | Melia Hotels Intl | 44,400 Shares of Common Stock | | | 476,014 |
| | Mercialys | 8,800 Shares of Common Stock | | | 196,304 |
| | Merck & Co Inc | 245,090 Shares of Common Stock | | | 13,918,661 |
| | Metlife Inc | 172,600 Shares of Common Stock | | | 9,335,934 |
| | Micron Tech Inc | 27,850 Shares of Common Stock | | | 975,029 |
| | Microsoft Corp | 263,561 Shares of Common Stock | | | 12,242,408 |
| | Mineral Deposits | 28,132 Shares of Common Stock | | | 17,151 |
| | Misumi Group Inc | 17,500 Shares of Common Stock | | | 582,385 |
| | Mizrahi Tefahot Bank Ltd | 29,800 Shares of Common Stock | | | 313,205 |
| | Mlp Lazard Ltd | 37,600 Shares of Common Stock | | | 168,797 |
| | Mlp Lazard | 11,815 Shares of Common Stock | | | 591,104 |
| | Molson Coors Brewing Co | 16,700 Shares of Common Stock | | | 1,244,484 |
| | Monadelphous Group | 13,810 Shares of Common Stock | | | 106,120 |
| | Mtu Aero Engines A | 6,083 Shares of Common Stock | | | 531,151 |
| | Nagaileben Co | 26,500 Shares of Common Stock | | | 432,328 |
| | Naver Corporation | 748 Shares of Common Stock | | | 484,534 |
| | Navient Corp | 74,600 Shares of Common Stock | | | 1,612,106 |
| | Nestle Sa | 48,983 Shares of Common Stock | | | 3,596,145 |
| | Netapp Inc | 14,050 Shares of Common Stock | | | 582,373 |
| | Newfield Exploration | 29,575 Shares of Common Stock | | | 802,074 |
| | News Corp | 146,100 Shares of Common Stock | | | 2,292,309 |
| | Ngk Insulators Ltd | 92,100 Shares of Common Stock | | | 1,915,821 |
| | Nhk Spring Co Ltd | 59,300 Shares of Common Stock | | | 522,297 |
| | Nippon Seiki Co | 14,000 Shares of Common Stock | | | 319,363 |
| | Nippon Shokubai Co | 19,000 Shares of Common Stock | | | 251,812 |
| | Nippon Thompson Co | 63,000 Shares of Common Stock | | | 311,072 |
| | Novartis Ag | 1,440 Shares of Common Stock | | | 133,834 |
| | Nrg Energy Inc | 32,650 Shares of Common Stock | | | 879,917 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | Nrg Energy Inc | 345,600 Shares of Common Stock | | | $ 9,313,920 |
| | Nufarm | 156,720 Shares of Common Stock | | | 607,914 |
| | Nuflare Technology | 3,400 Shares of Common Stock | | | 129,171 |
| | Nxp Semiconductors | 5,825 Shares of Common Stock | | | 445,030 |
| | Obic Co Ltd | 11,200 Shares of Common Stock | | | 367,588 |
| | Oc Oerlikon Corp | 23,810 Shares of Common Stock | | | 299,527 |
| | Okinawa Cellular | 4,600 Shares of Common Stock | | | 124,692 |
| | Olympus Corp | 98,200 Shares of Common Stock | | | 3,497,344 |
| | Ono Pharmaceutical | 7,300 Shares of Common Stock | | | 653,313 |
| | Orange Eur4 | 87,001 Shares of Common Stock | | | 1,489,649 |
| | Oriental Watch Hld | 274,000 Shares of Common Stock | | | 52,999 |
| | Orion Corp | 16 Shares of Common Stock | | | 14,775 |
| | Orion Corp | 459 Shares of Common Stock | | | 423,859 |
| | Osaka Titanium Technologies Co | 4,400 Shares of Common Stock | | | 84,701 |
| | Osram Licht | 6,413 Shares of Common Stock | | | 254,219 |
| | Ottogi Corpn | 1,585 Shares of Common Stock | | | 700,823 |
| | Oxford Instruments | 12,200 Shares of Common Stock | | | 242,541 |
| | Partners Group Hlg | 3,360 Shares of Common Stock | | | 978,936 |
| | Pbf Energy Inc | 31,600 Shares of Common Stock | | | 841,824 |
| | Pennon Group | 23,500 Shares of Common Stock | | | 336,927 |
| | Pepsico Inc | 91,106 Shares of Common Stock | | | 8,614,983 |
| | Pernod Ricard | 4,744 Shares of Common Stock | | | 529,616 |
| | Pfizer Inc | 486,660 Shares of Common Stock | | | 15,159,459 |
| | Pg& E Corp | 231,900 Shares of Common Stock | | | 12,346,356 |
| | Philip Morris Intl | 75,600 Shares of Common Stock | | | 6,157,620 |
| | Ping An Insurance Group 'H' | 85,862 Shares of Common Stock | | | 875,798 |
| | Pinnacle Foods Inc D | 20,200 Shares of Common Stock | | | 713,060 |
| | Pitney Bowes Inc | 22,725 Shares of Common Stock | | | 553,808 |
| | Pkc Group Oyj | 4,800 Shares of Common Stock | | | 102,109 |
| | Playtech PLC Ord | 53,864 Shares of Common Stock | | | 578,673 |
| | Pnc Financial Services Group | 61,918 Shares of Common Stock | | | 5,648,779 |
| | Portland General Electric Co | 9,800 Shares of Common Stock | | | 370,734 |
| | Precision Drilling Corporation | 153,450 Shares of Common Stock | | | 929,907 |
| | Premier Oil | 82,300 Shares of Common Stock | | | 214,562 |
| | Procter & Gamble | 109,409 Shares of Common Stock | | | 9,966,066 |
| | Prosegur Seguridad | 71,600 Shares of Common Stock | | | 408,939 |
| | Prudential | 68,481 Shares of Common Stock | | | 1,593,143 |
| | Prysmian Spa | 7,800 Shares of Common Stock | | | 142,992 |
| | Publicis Groupe Sa | 91 Shares of Common Stock | | | 6,567 |
| | Pvtpl Dell Inc | 357,500 Shares of Common Stock | | | 4,915,625 |
| | Pz Cussons | 71,400 Shares of Common Stock | | | 340,671 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | Qualcomm Inc | 69,400 Shares of Common Stock | | | $ 5,158,502 |
| | Quintiles Transnational Hldgs Inc | 13,325 Shares of Common Stock | | | 784,443 |
| | Raffles Medical | 158,000 Shares of Common Stock | | | 463,829 |
| | Ramirent Oyj | 52,100 Shares of Common Stock | | | 406,631 |
| | Raymond James Fncl Inc | 34,800 Shares of Common Stock | | | 1,993,692 |
| | Raytheon Co | 59,800 Shares of Common Stock | | | 6,468,566 |
| | Redrow | 95,900 Shares of Common Stock | | | 441,867 |
| | Regus PLC | 243,400 Shares of Common Stock | | | 790,923 |
| | Reorg/Covidien PLC | 48,742 Shares of Common Stock | | | 4,985,332 |
| | Reorg/Covidien PLC | 38,800 Shares of Common Stock | | | 3,968,464 |
| | Reorg/Covidien PLC | 61,500 Shares of Common Stock | | | 4,440,300 |
| | Republic Svcs Inc | 77,500 Shares of Common Stock | | | 3,119,375 |
| | Rexel | 26,600 Shares of Common Stock | | | 477,982 |
| | Ricoh Leasing | 9,600 Shares of Common Stock | | | 249,418 |
| | Rightmove | 9,600 Shares of Common Stock | | | 336,499 |
| | Roche Hldgs | 13,197 Shares of Common Stock | | | 3,584,633 |
| | Rock-Tenn Co | 18,345 Shares of Common Stock | | | 1,118,678 |
| | Rockwool Intl | 1,461 Shares of Common Stock | | | 165,123 |
| | Rolls Royce Holdings | 130,121 Shares of Common Stock | | | 1,765,153 |
| | Rolls Royce Holdings | 16,435,890 Shares of Common Stock | | | 25,628 |
| | Ross Stores Inc | 4,100 Shares of Common Stock | | | 386,466 |
| | Royal Caribbean Cruises | 9,555 Shares of Common Stock | | | 787,619 |
| | Rpc Group | 21,700 Shares of Common Stock | | | 168,164 |
| | S.W. Airl Co | 303,000 Shares of Common Stock | | | 12,822,960 |
| | Sabmiller PLC | 51,498 Shares of Common Stock | | | 2,698,824 |
| | Saf Holland | 51,400 Shares of Common Stock | | | 690,382 |
| | Saga PLC | 28,189 Shares of Common Stock | | | 68,172 |
| | Sakai Chemical Ind | 44,000 Shares of Common Stock | | | 140,189 |
| | Samchuly Bicycle | 15,225 Shares of Common Stock | | | 264,566 |
| | Sands China Ltd | 220,700 Shares of Common Stock | | | 1,085,734 |
| | Sartorius Stedim | 3,700 Shares of Common Stock | | | 722,170 |
| | Sato Holdings | 22,800 Shares of Common Stock | | | 522,958 |
| | Schlumberger Ltd | 15,664 Shares of Common Stock | | | 1,337,862 |
| | Schneider Electric | 17,205 Shares of Common Stock | | | 1,261,834 |
| | Schwab Charles Corp | 203,694 Shares of Common Stock | | | 6,149,522 |
| | Scor | 10,600 Shares of Common Stock | | | 323,164 |
| | Sdl Ord | 19,900 Shares of Common Stock | | | 128,771 |
| | Seek Limited | 18,767 Shares of Common Stock | | | 265,232 |
| | Segro PLC | 72,400 Shares of Common Stock | | | 418,031 |
| | Shanks Group | 169,900 Shares of Common Stock | | | 264,917 |
| | Shinko Elec Inds | 48,900 Shares of Common Stock | | | 336,482 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | Ship Healthcare Holdings Inc | 8,400 Shares of Common Stock | | | $ 192,108 |
| | Sika Ag | 110 Shares of Common Stock | | | 325,024 |
| | Skyworks Solutions Inc | 8,450 Shares of Common Stock | | | 614,399 |
| | Softbank Corp | 34,100 Shares of Common Stock | | | 2,050,636 |
| | Spar Nord Bank | 42,100 Shares of Common Stock | | | 396,799 |
| | Sparebank | 31,700 Shares of Common Stock | | | 221,973 |
| | Spectra Energy Corp | 79,700 Shares of Common Stock | | | 2,893,110 |
| | Spirent Comms | 215,100 Shares of Common Stock | | | 254,061 |
| | St James'S Place | 37,800 Shares of Common Stock | | | 480,063 |
| | Stanley Black & Decker Inc | 9,285 Shares of Common Stock | | | 892,103 |
| | Starz Liberty Ser | 24,110 Shares of Common Stock | | | 716,067 |
| | Sthree Ord | 109,800 Shares of Common Stock | | | 505,271 |
| | Sumitomo Real Est | 11,400 Shares of Common Stock | | | 258,912 |
| | Sun Tr Banks Inc | 36,415 Shares of Common Stock | | | 1,525,789 |
| | Sundrug Co Ltd | 10,400 Shares of Common Stock | | | 428,075 |
| | Sunstone Hotel Invs Inc | 78,300 Shares of Common Stock | | | 1,292,733 |
| | Suruga Bank | 36,000 Shares of Common Stock | | | 667,484 |
| | Swedbank Ag | 46,500 Shares of Common Stock | | | 1,161,275 |
| | Swedish Orphan Biovitrum | 111,300 Shares of Common Stock | | | 1,128,177 |
| | Synchrony Finl | 31,775 Shares of Common Stock | | | 945,306 |
| | Syngenta | 2,540 Shares of Common Stock | | | 817,994 |
| | T.K. Corp | 9,080 Shares of Common Stock | | | 95,003 |
| | Taylor Wimpey | 415,800 Shares of Common Stock | | | 893,407 |
| | Te Connectivity Ltd | 80,600 Shares of Common Stock | | | 5,097,950 |
| | Tecan Group Ag | 4,300 Shares of Common Stock | | | 489,005 |
| | Techtronic Industr | 327,000 Shares of Common Stock | | | 1,054,179 |
| | Telecom Italia Spa | 710,344 Shares of Common Stock | | | 758,125 |
| | Telefonica Sa | 117,573 Shares of Common Stock | | | 1,695,849 |
| | Telenet Grp Hldg | 19,802 Shares of Common Stock | | | 1,112,648 |
| | Teleperformance | 6,600 Shares of Common Stock | | | 450,669 |
| | Tencent Hldgs Limited | 165,300 Shares of Common Stock | | | 2,398,015 |
| | Texas Instruments Inc | 131,800 Shares of Common Stock | | | 7,046,687 |
| | Thermo Fisher Corp | 89,500 Shares of Common Stock | | | 11,213,455 |
| | Thk Co Ltd | 25,000 Shares of Common Stock | | | 610,117 |
| | Tikkurila Oy | 9,300 Shares of Common Stock | | | 163,063 |
| | Time Warner Cable Inc | 49,190 Shares of Common Stock | | | 7,479,831 |
| | Time Warner Cable Inc | 124,893 Shares of Common Stock | | | 10,668,360 |
| | Tivo Inc Com | 45,800 Shares of Common Stock | | | 542,272 |
| | T-Mobile | 35,600 Shares of Common Stock | | | 959,064 |
| | Tokyo Ohka Kogyo | 18,600 Shares of Common Stock | | | 574,002 |
| | Tokyo Tatemono Co | 101,000 Shares of Common Stock | | | 742,158 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common stock (continued) | | | | |
| | Toyota Motor Corp | 72,300 Shares of Common Stock | | | $ 4,557,683 |
| | Travis Perkins | 22,000 Shares of Common Stock | | | 637,016 |
| | Treas Wine Estates | 92,865 Shares of Common Stock | | | 362,501 |
| | Trinity Ind Inc | 24,005 Shares of Common Stock | | | 672,380 |
| | Tsutsumi Jewelr | 7,100 Shares of Common Stock | | | 151,777 |
| | Tyson Foods Inc | 37,820 Shares of Common Stock | | | 1,516,204 |
| | UCB | 17,495 Shares of Common Stock | | | 1,337,933 |
| | Unilever | 34,550 Shares of Common Stock | | | 1,364,588 |
| | Union Pac Corp | 62,900 Shares of Common Stock | | | 7,493,277 |
| | United Internet | 14,312 Shares of Common Stock | | | 649,174 |
| | United Sts Stl Corp | 32,525 Shares of Common Stock | | | 869,719 |
| | United Technologies Corp | 134,300 Shares of Common Stock | | | 15,444,500 |
| | US Bancorp | 223,335 Shares of Common Stock | | | 10,038,908 |
| | VCA Inc | 16,265 Shares of Common Stock | | | 793,244 |
| | Viacom Inc | 31,200 Shares of Common Stock | | | 2,347,800 |
| | Vinci 0 | 14,546 Shares of Common Stock | | | 801,039 |
| | Vontobel Hldgs | 13,901 Shares of Common Stock | | | 524,619 |
| | Voya Finl Inc | 25,575 Shares of Common Stock | | | 1,083,868 |
| | Vulcan Materials Co | 72,300 Shares of Common Stock | | | 4,752,279 |
| | Wal-Mart Stores Inc | 30,200 Shares of Common Stock | | | 2,593,576 |
| | Webster Fncl Corp | 61,625 Shares of Common Stock | | | 2,004,661 |
| | Wells Fargo & Co | 199,504 Shares of Common Stock | | | 10,936,809 |
| | Western Union Co | 369,294 Shares of Common Stock | | | 6,614,056 |
| | Westn Digital Corp | 10,400 Shares of Common Stock | | | 1,151,280 |
| | Whiting Pete Corp | 18,335 Shares of Common Stock | | | 605,055 |
| | Whole Foods Mkt Inc | 9,760 Shares of Common Stock | | | 492,099 |
| | Wienerberger Ag | 27,600 Shares of Common Stock | | | 382,233 |
| | Wincor Nixdorf Ag | 6,600 Shares of Common Stock | | | 321,130 |
| | Wood Group (John) | 49,600 Shares of Common Stock | | | 461,326 |
| | Wpp PLC | 103,936 Shares of Common Stock | | | 2,179,737 |
| | Xebio Co Ltd | 11,800 Shares of Common Stock | | | 197,823 |
| | Xl Group PLC | 17,595 Shares of Common Stock | | | 604,740 |
| | Xl Group PLC | 168,219 Shares of Common Stock | | | 5,781,687 |
| | Yamazen Corp | 46,000 Shares of Common Stock | | | 329,955 |
| | Zimmer Hldgs Inc | 8,160 Shares of Common Stock | | | 925,507 |
| | Zodiac Aerospace | 67,362 Shares of Common Stock | | | 2,274,983 |
| | Zumtobel Group Ag | 21,000 Shares of Common Stock | | | 475,314 |
| | Zurich Insurance Group | 4,177 Shares of Common Stock | | | 1,310,291 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Cash and cash equivalents | | | | |
| | Interest-Bearing Cash | USD deposits | | | $ 22,804,163 |
| | Cash | Foreign currency and collaterals | | | 1,741,655 |
| | Goldman Sachs | Cash Collateral | | | 260,000 |
| | Credit Suisse | Cash Collateral | | | 163,000 |
| | Credit Suisse | Cash Collateral | | | 112,000 |
| | Credit Suisse | Cash Collateral | | | 47,000 |
| | | | | | |
| | U.S. government securities | | | | |
| | FNMA | 1.625% Due 11-27-2018 | | | 703,370 |
| | FNMA | 2.375% Due 07-28-2015 | | | 101,241 |
| | FNMA | Wells Fargo Tr Mtg Pthru Ctf Cl A-1 Var 12-25-34 | | | 7,401 |
| | FNMA | J P Morgan Mtg Tr Fltg Rt 4.645883% Due 06-25-2035 | | | 182,287 |
| | FNMA | Tesco Coml Paper 4/2Yrs 3&4 Cpn 08-18-2015 | | | 356,759 |
| | FNMA | Gtd Mtg Pool #Ah9391 4% 03-01-2026 | | | 195,214 |
| | FNMA | Gtd Mtg Pool #Ai2095 4% 05-01-2026 | | | 820,356 |
| | FNMA | Gtd Mtg Pool #Aj1509 4% 09-01-2041 | | | 2,012,367 |
| | FNMA | Gtd Mtg Pool #Ak2411 4% Due 02-01-2042 | | | 497,823 |
| | FNMA | Fnra361225Be#Mbs Remic Adjustable 12-25-2036 | | | 191,654 |
| | FNMA | Pool #470989 2.9% Due 06-01-2020 | | | 399,848 |
| | FNMA | Pool #Ab1609 4% 10-01-2025 | | | 1,125,703 |
| | FNMA | Pool #Ab9280 4% 05-01-2043 | | | 390,195 |
| | FNMA | Pool #Ao1771 4% 05-01-2042 | | | 261,689 |
| | FNMA | Pool #Ap1215 3.5% 06-01-2043 | | | 925,907 |
| | FNMA | Remic Tr 2010-2 Cl-Gf Fltg 12-25-2049 | | | 82,526 |
| | FNMA | Ser 2011-40 Cl Sx Var Rt Due 11-25-2040 | | | 1,215 |
| | FNMA | Ser 2011-86 Cl Nf Fltg Rt Due 09-25-2041 | | | 86,699 |
| | FNMA | Single Family Mortgage 3.5% 15 Yrs Settles Jan | | | 24,297,338 |
| | FNMA | Single Family Mortgage 3.5% 30 Yrs Settles Jan | | | 7,713,923 |
| | FNMA | Single Family Mortgage 4% 30 Yrs Settles Feb | | | (2,661,300) |
| | FNMA | Single Family Mortgage 4.5% 30 Yrs Settles Jan | | | (19,538,442) |
| | FNMA | Single Family Mtg 5 30 Yrs Settles Feb | | | 2,207,148 |
| | FNMA | Fltg Ser 2007-34 Cl S 04-25-2037 | | | 102,579 |
| | FNMA | 2007-15 Cl Ai Var 03-25-2037 | | | 38,687 |
| | FNMA | 2007-56 Gs Flt Rt 06-25-2037 | | | 184,309 |
| | FNMA | Fr Cmo 25/03/37 Usd 03-25-2037 | | | 14,783 |
| | FNMA | Remic Ser 2005-84 Cl-Sg Flt Rt 10-25-2035 | | | 99,271 |
| | FNMA | Remic Tr 2009-87 Cl-Hs Var Rate 11-25-2039 | | | 15,060 |
| | FNMA | Ser 2007-32 Cl Sa Fltg Rt 04-25-2037 | | | 51,128 |
| | FNMA | Ser 2007-4 Cl Sl Fltg Rt 02-25-2037 | | | 10,342 |
| | FNMA | Ser 2007-89 Cl Sd Fltg Rt 09-25-2037 | | | 125,214 |
| | FNMA | Remic Tr 2011-60 Cl-Oa Prin Only 08-25-2039 | | | 147,663 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | U.S. government securities (continued) | | | |
| | FNMA | Ser 2013-M4 Cl X1 Var Rt 02-25-2018 | | | $ 456,175 |
| | GNMA | Single Family Mortgage 3% 30 Yrs Settles Jan | | | 2,045,250 |
| | GNMA | Pool #Ab9437 3.5 Due 11-15-2042 | | | 852,230 |
| | Federal Home Ln Mtg Corp | Preassign 00074 2.375 01-13-2022 | | | 1,010,294 |
| | Federal Home Ln Mtg Corp | Corp Andina De Fomento 3.95% 15/10/2021 | | | 49,576 |
| | Federal Home Ln Mtg Corp | Multiclass Ser 3828 Cl Sy 02-15-2041 Fltg | | | 3,477 |
| | Federal Home Ln Mtg Corp | Multiclass Ser 3951 Cl Us Fltg 02-15-2040 | | | 46,016 |
| | Federal Home Ln Mtg Corp | Multiclass Ser 3147 Cl Ls 04-15-2036 | | | 214,157 |
| | Federal Home Ln Mtg Corp | Multiclass Ser 3218 Cl As 09-15-2036 | | | 193,918 |
| | Federal Home Ln Mtg Corp | Multiclass Ser 3218 Cl Sa Flg Rt Due 09-15-2036 | | | 15,882 |
| | Federal Home Ln Mtg Corp | Discount Nt 01-28-2016 | | | 1,799,944 |
| | Federal Home Ln Mtg Corp | Discount Nt 02-12-2016 | | | 2,599,845 |
| | Federal Home Ln Mtg Corp | Discount Nt 01-23-2016 | | | 199,998 |
| | Federal Home Ln Mtg Corp | Discount Nt 02-04-2015 | | | 199,995 |
| | Federal Home Ln Mtg Corp | Discount Nt 04-09-2015 | | | 3,599,158 |
| | NCUA | Gtd Nts Tr 2010-R2 Gtd Nt Cl I-A Due 11-06-2017 | | | 418,833 |
| | Small Business Admin | Gtd Dev Partn Ctf 5.12 Due 11-01-2027 | | | 782,088 |
| | United States of America | Treas Bds 3% Due 11-15-2044 | | | 735,657 |
| | United States of America | Treas Nts 2.25% Due 11-15-2024 | | | 11,375,925 |
| | United States of America | Treas Nts 2.75% Due 02-15-2024 | | | 2,841,118 |
| | United States of America | Treas 1.75% Due 05-15-2022 | | | 3,784,731 |
| | United States of America | Treas Bonds 04-15-2029 | | | 8,878,532 |
| | United States of America | Treas Bonds 0.625%Tips 02-15-2043 | | | 38,840 |
| | United States of America | Treas Bonds 0.625%Tips 02-15-2043 | | | 97,099 |
| | United States of America | Treas Bonds 0.75 Deb Tips 02-15-2042 | | | 1,327,376 |
| | United States of America | Treas Bonds 0.75 Deb Tips 02-15-2042 | | | 1,470,324 |
| | United States of America | Treas Notes Inflation Index 0.125 Nts 07-15-2025 | | | 1,155,691 |
| | United States of America | Treas Notes Inflation Indexed 0.125 04-15-2019 | | | 7,470,586 |
| | United States of America | Treas Notes 1.25 07-15-2021 | | | 4,685,190 |
| | United States of America | Treas Bds 1.375 02-15-2044 | | | 6,342,223 |
| | United States of America | Treas Bds 1.375 02-15-2044 | | | 2,075,636 |
| | United States of America | Treas Bds 2.125 2-15-2042 | | | 2,972,947 |
| | United States of America | Treas Bds Index Linked 1.75 Due 01-15-2028 | | | 4,876,075 |
| | United States of America | Treas Bds Inflation Index Linked 3.875% 04-15-2030 | | | 2,150,019 |
| | United States of America | Treas Nts 0.125 04-15-2020 | | | 9,921,846 |
| | United States of America | Treas Nts Dtd 01/15/2013 Tips 01-15-2023 | | | 2,088,920 |
| | United States of America | Treas Nts Dtd 01/15/2013 Tips 01-15-2023 | | | 397,890 |
| | United States of America | Treas Nts Index Linked 01-15-2023 | | | 306,130 |
| | United States of America | Treas Nts Tips .375 07-15-2023 | | | 1,714,929 |
| | United States of America | Treas Nts Tips .375 07-15-2023 | | | 302,634 |
| | United States of America | Treas Notes Idx Lkd Nt 1.375 Nts Tips 1/15/2021 | | | 7,145,774 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | U.S. government securities (continued) | | | |
| | United States of America | Treas Bds Index Linked 2.00 Due 01-15-2026 | | | $ 164,516 |
| | United States of America | Treas Bds Index Linked 2.5 Due 01-15-2029 | | | 1,029,265 |
| | United States of America | Treas Bds Index Linked Notes 2.375 Due 01-15-2027 | | | 2,818,361 |
| | United States of America | Treas Bds Index Linked Notes 2.375 Due 01-15-2027 | | | 1,550,099 |
| | United States of America | Treas Infl Indexed Bonds 2.375 Due 01-15-2025 | | | 6,211,755 |
| | United States of America | Treas Nts Index Linked 1.875 Due 07-15-2019 | | | 14,323,021 |
| | United States of America | Treas Nts Index Linked 2.00 Due 01-15-2016 | | | 607,018 |
| | United States of America | Treas Nts Inflation Linked 2.50 Due 07-15-2016 | | | 7,599,150 |
| | United States of America | Treas Nts Tips 07-15-2023 | | | 9,356,078 |
| | United States of America | Treas Nts Tips Dtd 07-15-2011 07-15-2022 | | | 7,360,931 |
| | United States of America | Treasury Dtd 02/15/2010 02-15-2041 | | | 427,222 |
| | United States of America | Treasury Nts 1.125% Tips 15/1/21 01-15-2022 | | | 8,660,175 |
| | United States of America | Treasury Nts Tips Dtd 00340 04-15-2017 | | | 2,037,716 |
| | | | | | |
| | Corporate debt instruments | | | | |
| | ADT Corp | 6.25 Due 10-15-2021 | | | 462,375 |
| | Aecom | 5.75% Due 10-15-2022 | | | 715,750 |
| | AES Corp | Sr Nt 7.375 Due 07-01-2021 | | | 549,180 |
| | Aflac Inc | 6.45% Due 08-15-2040 | | | 650,459 |
| | Allflex Hldgs Inc | Term Loan Due 06-07-2021 | | | 483,334 |
| | Alliance Data Sys Corp | 6.375 Due 04-01-2020 | | | 306,750 |
| | Allison Transmission Inc | 7.125 Due 05-15-2019 | | | 549,281 |
| | Alphabet Hldg Co | 7.75% Due 11-01-2017 | | | 254,250 |
| | Altice S A | 7.75 Due 05-15-2022 | | | 200,375 |
| | Altria Group Inc | 9.7% Due 11-10-2018 | | | 253,962 |
| | Amc Networks Inc | 7.75 Due 07-15-2021 | | | 218,280 |
| | Amerigas Fin Corp | Nt 6.75 5-20-2020 | | | 643,750 |
| | Ameristar Casinos | 7.5% Due 04-15-2021 | | | 781,867 |
| | Amern Bldrs | 5.625% Due 04-15-2021 | | | 502,500 |
| | Amern Fltg | 6.7521% Due 08-01-2019 | | | 257,250 |
| | Ancestry Com Hldgs LLC | 9.625 Due 10-15-2018 | | | 441,000 |
| | Appalachian Pwr Co | 7.95% Due 01-15-2020 | | | 624,205 |
| | Arcelormittal SA | Due 08-05-2020 | | | 518,750 |
| | Aristocrat Leisure Limited | First Lien Due 09-29-2021 | | | 343,000 |
| | Asbury Automotive Group Inc | 6.0% Due 12-15-2024 | | | 203,500 |
| | Atlantic Power Limited Partnership | Term Loan Due 02-24-2021 Beo | | | 451,885 |
| | Atwood Oceanics Inc | 6.5 Due 02-01-2020 | | | 386,750 |
| | Ayt Ced Cajas | 3.75% A/B Bd 31/3/15 Eur'A' | | | 244,017 |
| | Banc Amer | Remic Tr 2010-Uber5 Due02-17-2051 | | | 688,671 |
| | Banc Amer | Remic Tr 2009-Uber2 Coml Mtg Ctf Var 12-24-49 | | | 434,234 |
| | Banco Mercantile | 4.375% Due 07-19-2015 | | | 303,750 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | Barclays Bank PLC | 6.5% Fxd Rte Perp Sub Ctg C | | | $ 237,654 |
| | Barclays Bank PLC | 7.625 Due 11-21-2022 | | | 328,028 |
| | Barrick Gold Corp | 6.95 Due 04-01-2019 | | | 569,355 |
| | Bear Stearns | 2.69015% Due 01-25-2035 | | | 227,704 |
| | Belden Inc | 5.5 Due 09-01-2022 | | | 272,938 |
| | Berry Pete Co | 6.375 Due 09-15-2022 | | | 342,000 |
| | Bhp Finance Ltd | 5.4% Due 03-29-2017 | | | 650,064 |
| | Biomet Inc | 6.5% Due 08-01-2020 | | | 743,650 |
| | Biomet Inc | 6.5% Due 10-01-2020 | | | 105,500 |
| | Bldg Matls Corp | 5.375% Due 11-15-2024 | | | 374,062 |
| | Borgata | Term Ln Due 08-15-2018 Beo | | | 226,748 |
| | Boyd Gaming Corp | 9.125% Due 12-01-2018 | | | 410,000 |
| | Brand Energy & Infrastructure | 8.5 Due 12-01-2021 | | | 450,000 |
| | Cablevision Sys | 5.875% Due 09-15-2022 | | | 506,250 |
| | Cablevision Sys | Sr Nt 8 Due 04-15-2020 | | | 352,560 |
| | California Res Corp | 6% Due 11-15-2024 | | | 359,125 |
| | Calpine Corp | 5.75% Due 01-15-2025 | | | 202,500 |
| | Calpine Corp | 7.875% Due 01-15-2023 | | | 353,903 |
| | Cantor Fitzgerald | 7.875% Due 10-15-2019 | | | 546,250 |
| | Cascades Inc | 7.875% Due 01-15-2020 | | | 194,480 |
| | Cco Hldgs LLC | 5.125% Due 02-15-2023 | | | 317,687 |
| | Cco Hldgs LLC | 6.625% Due 01-31-2022 | | | 584,375 |
| | Ccoh Safari LLC | 5.5% Due 12-01-2022 | | | 101,500 |
| | Celulosa Arauco Y | 5% Due 01-21-2021 | | | 417,828 |
| | Centurylink Inc | 5.8 Due 03-15-2022 | | | 492,812 |
| | Cequel Communications Hldgs | Sr Nt 144A 5.125 | | | 97,000 |
| | Cequel Communications Hldgs | 6.375 Due 09-15-2020 | | | 750,375 |
| | CGG SA | 6.875% Due 01-15-2022 | | | 190,000 |
| | Charter Communications Oper LLC | Term Loan E Due 03-31-2020 | | | 483,082 |
| | Checkout Holdings Corp | Term Ln(1St Lien)Due 04-03-2021 | | | 235,971 |
| | Choice Hotels Intl | 5.75% Due 07-01-2022 | | | 326,040 |
| | Chrysler Group LLC | 8.25 Due 06-15-2021 | | | 553,750 |
| | Chs / Cmnty Hlth | 5.125% Due 08-01-2021 | | | 259,375 |
| | Chs / Cmnty Hlth | 6.875% Due 02-01-2022 | | | 476,719 |
| | CIFC | Var Rt Due 08-14-2024 | | | 1,101,430 |
| | Cit Group Inc | 5.25% Due 03-15-2018 | | | 559,822 |
| | Citigroup Commer Mortgage Trust | Var Rt 05-14-2017 | | | 535,583 |
| | Citizens | 7.125% Due 03-15-2019 | | | 711,750 |
| | Clean Hbrs Inc | 5.25% Due 08-01-2020 | | | 429,135 |
| | Commercial Mtg | 3.83 Due 07-10-2046 | | | 314,448 |
| | Commercial Mtg | Pass-Thru Ser2010-C1 Cl A1 144A 3.156 11-1-2015 | | | 429,497 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | Commercial Mtg | Passthru Ctf Cl A-4 5.444 Due 03-10-2039 | | | $ 533,339 |
| | Commercial Mtg | Pass Thru Ctf Cl A-4B Due 12-10-2049 | | | 300,482 |
| | Commscope Hldg Co Inc | 6.625 Due 06-01-2020 | | | 206,000 |
| | Commscope Inc | 5.5% Due 06-15-2024 | | | 295,500 |
| | Constellation Brands Inc | 3.875% Due 11-15-2019 | | | 503,750 |
| | Consumers Energy | 5.5% Due 08-15-2016 | | | 211,379 |
| | Corp Andina De Fomento | 3.95% 15/10/2022 | | | 255,621 |
| | Cpg Merger Sub LLC | 8% Due 10-01-2021 | | | 460,125 |
| | CR Agricole SA | 8.125 09-19-2033 | | | 446,270 |
| | Cr Suisse | 6.5 Due 08-08-2023 | | | 219,864 |
| | Cred Agricole SA | 6.5% 23/12/2049 | | | 493,337 |
| | Credit Suisse Coml Mtg | 5 Due 09-15-2040 | | | 220,891 |
| | Credit Suisse Coml Mtg | Var Rt Due 01-15-2049 | | | 812 |
| | Crestwood Midstream Partners | 6% 12-15-2020 | | | 478,750 |
| | Csc Hldgs LLC | 5.25% Due06-01-2024 | | | 201,000 |
| | Csmc Ser | Var Rt Due 09-15-2040 | | | 213,818 |
| | Csmc Ser | Var Rt Due 06-10-2049 | | | 211,647 |
| | Cumulus Media | 7.75% Due 05-01-2019 | | | 404,000 |
| | Cwmbs Inc | 2004-Hyb2 Cl 6-A Flt Rt Due 07-20-2034 | | | 120,056 |
| | Cyrusone | 6.375% Due 11-15-2022 | | | 480,375 |
| | Dana Hldg Corp | 5.5% Due 12-15-2024 | | | 151,500 |
| | Dana Hldg Corp | 6.75% Due 02-15-2021 | | | 343,687 |
| | Darling | 5.375% Due 01-15-2022 | | | 517,125 |
| | Davita Inc | 5.75 Due 08-15-2022 | | | 742,000 |
| | Dbubs | Pass Thru Ctf Cl A-2 144A 4.528 07-01-19 | | | 431,756 |
| | Dbubs | 3.386% Due 07-10-2044 | | | 830,845 |
| | Dealer Tire, LLC | Term Loan B First Liendue 12-17-2021 | | | 471,438 |
| | Digitalglobe Inc | 5.25 Due 2-01-2021 | | | 522,500 |
| | Dish Dbs Corp | 4.25% Due 04-01-2018 | | | 153,187 |
| | Dish Dbs Corp | 5% Due 03-15-2023 | | | 145,125 |
| | Dish Dbs Corp | 5.875% Due 07-15-2022 | | | 720,575 |
| | Dish Dbs Corp | 5.875% Due 11-15-2024 | | | 351,750 |
| | Dole Food Co Inc | 7.25 Due 05-01-2019 | | | 448,875 |
| | Donnelley R R | 6% Due 04-01-2024 | | | 123,125 |
| | Donnelley R R | 6.5% Due 11-15-2023 | | | 486,875 |
| | Duane Str Clo Iv Ltd | Var Rt Due 01-11-2021 | | | 336,168 |
| | Dynegy Fin I Inc | 7.625% Due 11-01-2024 | | | 408,000 |
| | Dynegy Inc | 5.875% Due 06-01-2023 | | | 522,500 |
| | E Trade Finl Corp | 5.375% Due 11-15-2022 | | | 511,250 |
| | Ed Ln Fdg Master Tr | Asset Backed Nt A-3L 144A 08-25-2028 | | | 198,202 |
| | EFS Volunteer | Var Rt Due 10-25-2021 | | | 77,670 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | Encana Corp | 6.5% Due 05-15-2019 | | | $ 454,046 |
| | Endeavor Energy Resource | Sr Nt 7 Due 08-15-2021 | | | 354,000 |
| | Endo Fin LLC | 7% Due 07-15-2019 | | | 521,875 |
| | Ensco PLC | 4.7% Due 03-15-2021 | | | 100,453 |
| | Entergy Ark Inc | 3.75% Due 02-15-2021 | | | 318,425 |
| | Entergy Gulf Sts | 3.95% Due 10-01-2020 | | | 321,021 |
| | Exopack Hldgs S A | 7.875 Due 11-01-2019 | | | 515,000 |
| | Exp-Imp Bank Korea | Flt Rt 20/03/2015 | | | 601,541 |
| | Extended Stay Amer | 2.9575 Due 12-05-2031 Beo | | | 405,290 |
| | Felcor Lodging Ltd | 6.75% Due 06-01-2019 | | | 415,480 |
| | Felcor Lodging Ltd Partnership | 5.625 Due 03-01-2023 | | | 445,500 |
| | Firstenergy Corp | 4.25 Due 03-15-2023 | | | 206,363 |
| | Florida Gas Transmission Co | 5.45% Due 07-15-2020 | | | 551,620 |
| | Ford Mtr Cr Co LLC | 1.5 Due 01-17-2017 | | | 198,924 |
| | Ford Mtr Cr Co LLC | 3.984 Due 06-15-2016 | | | 310,621 |
| | Ford Mtr Cr Co LLC | 4.207% Due 04-15-2016 | | | 414,018 |
| | Foresight Energy | 7.875% Due 08-15-2021 | | | 370,312 |
| | Fpl Group Cap Inc | 7.875 Due 12-15-2015 | | | 79,792 |
| | Frontier | 6.25% Due 09-15-2021 | | | 100,500 |
| | Fti Consulting Inc | 6% Due 11-15-2022 | | | 766,875 |
| | Gannett Co Inc | 5.5% Due 09-15-2024/09-08-2014 | | | 501,250 |
| | Goldman Sachs Grp | Snr Nts 05/2015 Eur1000 | | | 726,559 |
| | Goodyear Tire | Sr Nt 8.25 Due 08-15-2020 | | | 530,000 |
| | Granite Master | Mtgbacked Nt Cl A7 Due 12-20-2054 Reg | | | 34,958 |
| | Granite Master | 2003-3 Cl 1B Fltg Rate Due 01-20-2044 | | | 708,634 |
| | Granite Master | 2006-1 Nt Cl A5 144A Var Rt 12-20-54 | | | 149,059 |
| | Grantie Acquisition Inc | Term Loan Second Lien Due 10-14-2022 | | | 479,156 |
| | Graphic Packaging | 4.875% Due 11-15-2022 | | | 502,500 |
| | Gray T.V. Inc | 7.5% Due 10-01-2020 | | | 725,120 |
| | GS Mtg | 3.849 Due 12-10-2043 | | | 276,259 |
| | GS Mtg | Pass Thru Ctfcl A-2 144A 4.592 10 Aug 2043 | | | 661,165 |
| | GS Mtg | 2010-C2 Var Rt Due 12-10-2043 | | | 113,560 |
| | GS Mtg | Pass Thru Ctf Cl 2A1 Due 11-25-2035 | | | 108,616 |
| | GS Mtg | 2004-Cw1 Cl Iia-1 6% Due 04-01-2034 | | | 301,671 |
| | GS Mtg | 2005-Ar6 Cl 1A1 Due 09-25-2035 | | | 209,994 |
| | Gulfmark Offshore Inc | Sr Nt 6.375 Due 03-15-2022 | | | 380,695 |
| | Hallmark Fdg Ltd | 2006-1A Cl A1 Fltg 05-21-2021 | | | 458,522 |
| | HCA Hldgs Inc | 5.875% Due 03-15-2022 | | | 124,830 |
| | HCA Hldgs Inc | 6.25% Due 02-15-2021 | | | 479,250 |
| | HCA Hldgs Inc | 7.75% Due 05-15-2021 | | | 235,365 |
| | HCA Hldgs Inc | Sr Nt 7.5 Due 02-15-2022 | | | 285,625 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | Hd Supply Inc | 7.5 Due 07-15-2020 | | | $ 419,000 |
| | Hertz Corp | 6.25 Due 10-15-2022 | | | 404,000 |
| | Hertz Corp | 7.375% Due 01-15-2021 | | | 262,500 |
| | Holly Energy | 6.5% Due 03-01-2020 | | | 495,000 |
| | Hologic Inc | 6.25 Due 08-01-2020 | | | 381,680 |
| | Hornbeck Offshore | 5.875 Due 04-01-2020 | | | 442,500 |
| | HSBC Bank | 0% Eln Snr 17/11/16 Usd7.66 | | | 1,210,388 |
| | HSBC Fin Corp | 6.676% Due 01-15-2021 | | | 2,200,876 |
| | HSBC Fin Corp | Due 06-01-2016 | | | 1,017,773 |
| | Hughes Satellite | 6.5% Due 06-15-2019 | | | 536,250 |
| | Hughes Satellite | 7.625% Due 06-15-2021 | | | 275,000 |
| | Infor US Inc | 11.5 Due 07-15-2018 | | | 491,590 |
| | Infor US Inc | 9.375 Due 04-01-2019 | | | 535,000 |
| | Intelsat | 6.75% Due 06-01-2018 | | | 357,000 |
| | Intelsat Jackson | 7.25% Due 04-01-2019 | | | 260,937 |
| | Intelsat Jackson Hldgs | 7.25 Due10-15-2020/10-15-2015 | | | 528,125 |
| | Intesa Sanpaolo S P A | 2.375 Due 01-13-2017 | | | 504,376 |
| | Intl Lease Fin Corp | 6.75 Due 09-01-2016 | | | 106,500 |
| | Isle Capri Casinos | 7.75% Due 03-15-2019 | | | 301,185 |
| | Isle Capri Casinos | 8.875 Due 06-15-2020 | | | 468,000 |
| | J P Morgan | 4.645883% Due 06-25-2035 | | | 44,001 |
| | J P Morgan Chase Coml Mtg | 3.853 Due 6-15-15 | | | 217,423 |
| | J P Morgan Chase Coml Mtg | 3.45% Due 03-01-2016 | | | 205,281 |
| | J P Morgan Chase Coml Mtg | 4.3877 Due 02-15-2046 | | | 538,111 |
| | J P Morgan Chase Coml Mtg | 4.1063 Due 07-15-2046 | | | 854,866 |
| | J P Morgan Chase Coml Mtg | 5.399 Due 05-15-2045 | | | 388,829 |
| | Jersey Str Clo Ltd | .51620000601%Due 10-20-2018 | | | 92,912 |
| | Jo-Ann Stores Inc | 9.75 Due 10-15-2019 | | | 467,500 |
| | JP Morgan Chase Bank | 8.375% 19/03/2024 | | | 691,291 |
| | JP Morgan Chase Bank | 6.125% Due 17/05/2028 | | | 399,677 |
| | JP Morgan Chase Bank | 7.0% Due 17/05/2022 | | | 894,918 |
| | Jupiter Res Inc | 8.5 Due 10-01-2022 | | | 319,812 |
| | Kazmunaygas National Co | 4.875% 07/05/2025 | | | 371,661 |
| | KBC Bank | 8% Sub 25/01/2023 | | | 450,000 |
| | Kinder Morgan | 5.95% Due 02-15-2018 | | | 993,603 |
| | Klx Inc | 5.875% Due 12-01-2022 | | | 126,250 |
| | Kommunalbanken | 1.75% Due 10-05-2015 | | | 403,804 |
| | Kraft Foods Group | 1.625% Due 06-04-2015 | | | 100,426 |
| | Lamar Media Corp | 5.875 Snr Nt Due 02-01-2022 | | | 466,875 |
| | Level 3 Escrow Ii Inc | 5.375% Due 08-15-2022 | | | 100,500 |
| | Level 3 Fing Inc | 5.75% Due 12-01-2022 | | | 150,937 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | Level 3 Fing Inc | 7 Due 06-01-2020 | | | $ 790,312 |
| | Levi Strauss & Co | 7.625% Due 05-15-2020 | | | 516,600 |
| | Levi Strauss & Co | 6.875 Due 05-01-2022 | | | 107,500 |
| | Lineage Logistics LLC | Term Ln Due 03-31-2021 | | | 384,070 |
| | Linn Energy LLC | 6.5% Due 09-15-2021 | | | 202,500 |
| | Linn Energy LLC | 7.75% Due 02-01-2021 | | | 555,207 |
| | Live Nation Entmt | 5.375% Due 06-15-2022 | | | 450,000 |
| | Lloyds Banking Gp | 7.625% Undated Nts | | | 468,468 |
| | LSB Inds Inc | 7.75 Due 08-01-2019 | | | 520,000 |
| | Magyar Export-Import Bank | 4.0% 30/01/2020 | | | 199,300 |
| | Mallinckrodt Intl | 4.75% Due 04-15-2023 | | | 480,000 |
| | Mauser Industrieverpackungen | Term Loan Due 06-25-2021 | | | 539,000 |
| | Mdc Partners Inc | 6.75 Due 04-01-2020 | | | 721,000 |
| | Mediacom LLC | 7.25 Due 02-15-2022 | | | 550,830 |
| | Mem Prodtn | 6.875% Due 08-01-2022 | | | 342,000 |
| | Merrill Lynch | 2004-D Cl A1 09-25-2029 | | | 88,894 |
| | Merrill Lynch & Co Inc | Tranche # Tr00677 6.875% Due 04-25-2018 | | | 574,290 |
| | Montefiore Med Ctr | Taxbl Rev Bd 144A Due 05-20-27 | | | 526,238 |
| | Moog Inc | 5.25% Due 12-01-2022 | | | 354,375 |
| | Mph Acquisition Hldgs LLC | 6.625 04-01-2022 | | | 587,938 |
| | Multi-Color Corp | 6.125% Due 12-01-2022 | | | 350,000 |
| | Murray Energy Corp | 9.5% Due 12-05-2020 | | | 475,000 |
| | Murray Energy Corp | Term Loan Due 11-21-2019 | | | 430,064 |
| | Nbty Inc | Sr Nt 9 Due 10-01-2018 | | | 272,700 |
| | Neff Corp | Term Loan Second Lien Due 05-21-2021 | | | 408,191 |
| | Neiman Marcus Group Inc | Term Ln Due 10-25-2020 | | | 386,987 |
| | Neustar Inc | 4.5% Due 01-15-2023 | | | 218,125 |
| | Nexstar Broadcasting Inc | 6.875 Due 11-15-2020 | | | 615,238 |
| | Nissan Mtr Accep Corp | 1.95 Due 09-12-2017 | | | 402,599 |
| | Nortek Inc | 8.5% Due 04-15-2021 | | | 642,000 |
| | Nrg Energy Inc | 7.875% Due 05-15-2021 | | | 484,875 |
| | Nrg Energy Inc | 8.25% Due 09-01-2020 | | | 159,058 |
| | NRG Energy Inc | 6.25% Due 05-01-2024 | | | 101,750 |
| | Oasis Pete Inc | 7.25 Due 02-01-2019 | | | 891,970 |
| | OBP Depositor LLC | 4.6462 Due 07-15-2045 | | | 553,902 |
| | Omega Healthcare | 6.75 Due 10-15-2022 | | | 265,000 |
| | Oxea Finance And Cy. S.C.A. | Term Loan (Second Lien) Due 07-15-2020 | | | 473,750 |
| | Penske Automotive | 5.375% Due 12-01-2024 | | | 202,500 |
| | Penske Automotive | 5.75% Due 10-01-2022 | | | 389,063 |
| | Pertamina Pt | 6 Due 05-03-2042 | | | 195,250 |
| | Petrobras Global | 4.875% Due 03-17-2020 | | | 126,294 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | Petrobras Intl Fin | 3.875% Due 01-27-2016 | | | $ 588,780 |
| | Petroleos | 4.875% Due 01-18-2024 | | | 442,614 |
| | Petroleos | 5.5% Due 01-21-2021 | | | 108,250 |
| | Petroleos | 5.5% Due 06-27-2044 | | | 445,740 |
| | Petroleos De | 6% Due 11-15-2026 | | | 340,331 |
| | Petroleos De | 8.5% Due 11-02-2017 | | | 43,014 |
| | Petroleos Mexicanos | 4.875 Due 01-24-2022 | | | 283,848 |
| | Pinnacle Entmt Inc | 8.75% Due 05-15-2020 | | | 638,868 |
| | Plastipak Hldgs Inc | 6.5% Due 10-01-2021 | | | 472,625 |
| | Polymer Group Inc | 6.875% Due 06-01-2019 | | | 336,000 |
| | Potash Corp Sask | 6.5% Due 05-15-2019 | | | 659,432 |
| | Pride Intl Inc | 6.875% Due 08-15-2020 | | | 448,789 |
| | Pt Pertamina | Tranche # 6.45% 30/05/2044 | | | 1,151,150 |
| | Pvtpl 1011778 B C Unlimited Liab | 1011778 B C Unlimited Liability | | | 461,250 |
| | Pvtpl Banco Santander Chile | Sr Nt Fltg 144A Var Rt Due 01-19-2016 | | | 300,750 |
| | Pvtpl Baytex Energy Corp Sr Nt | 5.625% Due 06-01-2024/06-06-2014 Beo | | | 425,000 |
| | Pvtpl BPCE | 4.625 Due 07-11-2024 Beo | | | 582,513 |
| | Pvtpl Constellium | 8.0% Due 01-15-2023 | | | 248,750 |
| | Pvtpl Constellium | 5.75% Due 05-15-2024/05-07-2014 | | | 261,000 |
| | Pvtpl Credit Suisse Group | 6.5 Due 08-08-2023 Beo | | | 439,088 |
| | Pvtpl Dufry Fin | Nt 5.5 Due 10-15-2020 | | | 520,105 |
| | Pvtpl Fmg Res August 2006 Pty | Sr Nt 8.25 Due 11-01-2019 | | | 204,750 |
| | Pvtpl Fresenius Med Care | 4.125 10-15-2020/10-29-2014 | | | 502,500 |
| | Pvtpl Goodman Fdg Pty Ltd Gtd | Sr Nt 144A6.375% Due 11-12-2020 Beo | | | 431,887 |
| | Pvtpl Ineos Group Hldgs | 6.125 Due 08-15-2018 Beo | | | 478,750 |
| | Pvtpl Intesa Sanpaolo S P A | 6.5 2-24-2021 | | | 347,056 |
| | Pvtpl Leaseplan Corp | 3 10-23-2017 Reg | | | 512,121 |
| | Pvtpl N Atlc Drilling Ltd | 6.25 Due 02-01-2019 | | | 491,250 |
| | Pvtpl Numericable Group | 6 Due 05-15-2022 | | | 502,750 |
| | Pvtpl Seadrill Ltd | 5.625 Due 09-15-2017 | | | 442,500 |
| | Pvtpl Seadrill Ltd | 6.125 Due 09-15-2020 | | | 207,500 |
| | Pvtpl Standard Chartered PLC | Sub Nt 3.9501-11-2023 | | | 289,512 |
| | Pvtpl Trinidad Drilling Ltd | Sr Nt 7.875% Due 01-15-2019/01-15-2015 | | | 372,000 |
| | Pvtpl Videotron Ltd | 5.375 Due 06-15-2024/04-09-2014 | | | 255,000 |
| | Qep Res Inc | 6.875% Due 03-01-2021 | | | 512,500 |
| | Quebecor Media Inc | 5.75% Due 01-15-2023 | | | 369,122 |
| | Rabobank Nederland | 8.4 Due 29-11-2049 | | | 439,000 |
| | Rbscf Tr | Pass Thru Ctf Cl Msci A 144A Var 6-16-2049 | | | 307,617 |
| | Rbscf Tr | Pass Thru Ctf Cl Wbcmt A 144A Var Rt 4-16-47 | | | 616,340 |
| | Rbssp Resecuritization | 2010-1 Cl 2-A1 144A Var 07-26-2045 | | | 364,352 |
| | RCS Cap Corp | Term Ln Due 04-29-2019 | | | 250,250 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | Renaissance Acquisition Corp | 6.875Bds Due 08-15-2021 | | | $ 432,000 |
| | Rent A Ctr Inc | 6.625 Due11-15-2020 | | | 240,000 |
| | Reynolds Group | 5.75 Due 10-15-2020 | | | 128,125 |
| | Reynolds Group | 9.875 Due 08-15-2019 | | | 473,820 |
| | Rice Energy Inc | 6.25 Due 05-01-2022 | | | 372,000 |
| | Sabine Pass Lng | 7.5% Due 11-30-2016 | | | 208,000 |
| | Safway Group Hldg | 7% Due 05-15-2018 | | | 427,500 |
| | Sally Hldgs LLC | 5.75 Due 06-01-2022 | | | 471,375 |
| | SBA | 5.75 Due 07-15-2020 | | | 763,350 |
| | Scientific Games Intl Inc | 6.25 Due 09-01-2020 Reg | | | 350,000 |
| | Selkirk | 1.183 Due 02-20-2041 | | | 315,895 |
| | Sequa Corp | 7% Due 12-15-2017 | | | 450,000 |
| | Shell Intl Fin | 3.25% Due 09-22-2015 | | | 203,735 |
| | Signode Indl Group US Inc | 6.375 Due 05-01-2022 | | | 438,750 |
| | Sinclair T.V | 6.125% Due 10-01-2022 | | | 734,635 |
| | Sinclair T.V. | Sinclair T.V. 5.375% Due 04-01-2021 | | | 99,250 |
| | Sirius Xm Radio Inc | 6 Due 07-15-2024 | | | 563,750 |
| | SLM Corp | 6.25 Due 01-25-2016 | | | 208,000 |
| | SLM Corp | 8.45% Due 06-15-2018 | | | 111,500 |
| | Southern Co | 2.375% Due 09-15-2015 | | | 606,533 |
| | Southern Star Cent Corp | 5.125% Due 07-15-2022 | | | 477,375 |
| | Southwestn Elec | 5.375% Due 04-15-2015 | | | 404,939 |
| | Spectrum Brands Inc | 6.375 Due11-15-2020 | | | 521,250 |
| | Speedway Motorsports Inc | 6.75 Due 02-01-2019 | | | 618,000 |
| | Sprint Corporation | 7.25% Due 09-15-2021 | | | 396,500 |
| | Sprint Nextel Corp | 6 Due 11-15-2022 | | | 920,000 |
| | Statoil Asa | 3.125 Due 08-17-2017 | | | 626,848 |
| | Steelriver Transm Co | 4.71 Due 06-30-2017 | | | 162,105 |
| | Stone Str | 5.902% Due 12-15-2015 | | | 520,481 |
| | Structured Asset Secs Corp | Adj Rate Mtg Ln Tr Due 11-25-2034 | | | 87,847 |
| | Structured Asset Secs Corp | 2003-40A Cl 3-A1 Due 01-25-2034 | | | 266,103 |
| | Subn Propane | 5.5% Due 06-01-2024 | | | 241,250 |
| | Subn Propane | 7.375% Due 08-01-2021 | | | 246,163 |
| | Summit Materials LLC | Fin 10.5 01-31-2020 | | | 555,000 |
| | Sungard Data Systems Inc | 6.625 Due 11-01-2019 | | | 1,010,000 |
| | Sydney Airport Finance | 5.125 Due 02-22-2021 | | | 448,102 |
| | Syniverse Hldgs | 9.125% Due 01-15-2019 | | | 270,655 |
| | Teck Resources Ltd | 4.5% Due 01-15-2021 | | | 391,248 |
| | Tempur Sealy Intl Inc | 6.875 Due 12-15-2020 | | | 451,563 |
| | Tenet Healthcare | 6.75% Due 02-01-2021 | | | 526,250 |
| | Tenet Healthcare | 8% Due 08-01-2020 | | | 263,750 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | Tenet Healthcare | 8.125 Due 04-01-2022 | | | $ 279,375 |
| | Tenet Healthcare Corp | 5% Due 03-01-2019 | | | 150,188 |
| | Tenet Healthcare Corp | 5.5% Due 03-01-2019 | | | 102,250 |
| | Tenneco Inc | 6.875% Due 12-15-2020 | | | 528,750 |
| | Terex Corp | 6 Due 05-15-2021 | | | 612,000 |
| | Term BEO | Second Lien Due 07-02-2022 | | | 583,000 |
| | Tesco | Coml Paper 4/2Yrs 3&4 Cpn 08-18-2015 | | | 294,717 |
| | Tesoro Logistics Lp/Corp | 6.25% Due 10-15-2022 Beo | | | 498,750 |
| | Thc Escr Corp | 6 Due 10-01-2020 | | | 268,458 |
| | Thornburg | Pass Thru Ctf Cl 3A-1 Due 09-25-2037 | | | 90,480 |
| | Times Sqr | Pass Thru Ctf 144A Cl A 5.4 Due 12-13-28 | | | 342,432 |
| | T-Mobile USA Inc | 6.125 Due 01-15-2022 | | | 253,750 |
| | T-Mobile USA Inc | 6.375% Due 03-01-2025 | | | 254,000 |
| | T-Mobile USA Inc | 6.542% Due 04-28-2020 | | | 258,125 |
| | T-Mobile USA Inc | 6.731% Due 04-28-2022 | | | 412,000 |
| | Tms International Corp | 7.625 Due 10-15-2021 | | | 312,750 |
| | Toledo Edison Co | 7.25% Due 05-01-2020 | | | 97,615 |
| | Total CAP | 4.45% Due 06-24-2020 | | | 438,840 |
| | Transunion Hldg Co | 8.125 Due 06-15-2018 | | | 203,975 |
| | Transunion Hldg Co | 9.625 Due 06-15-2018 Reg | | | 162,625 |
| | Trinseo Matls Oper S C A | 8.75 02-01-2019 | | | 576,824 |
| | Tronox Fin LLC | 6.375 Due 08-15-2020 | | | 476,188 |
| | TWCC Hldg Corp | Term Loan Due 12-11-2020 | | | 236,250 |
| | UBS Ag Jersey | Brh 22/02/2022 | | | 322,442 |
| | Unit Corp | 6.625% Due 05-15-2021 | | | 313,250 |
| | United Surgical Partners Intl Inc | Term Loan Due 04-03-2019 | | | 340,447 |
| | USI Inc | Term Ln 2013 Due 12-27-2019 | | | 480,848 |
| | Utd Rentals N Amer | 8.375% Due 09-15-2020 | | | 536,250 |
| | Vale Overseas Ltd | 4.625% Due 09-15-2020 | | | 202,089 |
| | Vale Overseas Ltd | 6.875% Due 11-21-2036 | | | 105,419 |
| | Valeant Pharmaceuticals Intl | 6.875 Due 12-01-2018 | | | 272,316 |
| | Venture Vii Cdo Ltd | Var Rt Due 01-20-2022 | | | 407,018 |
| | Verizon Communications | 5.012% Due 08-21-2054 | | | 56,900 |
| | Verizon Communications | 5.15 Bds Due 09-15-2023 | | | 110,423 |
| | Verizon Communications | 6.55 Bds Due 09-15-2043 | | | 840,434 |
| | Viking Cruises Ltd | 8.5 Due 10-15-2022 | | | 541,250 |
| | Vpi Escrow Corp | 6.375 Due 10-15-2020 | | | 522,500 |
| | Vpii Escr Corp | 7.5 Due 07-15-2021 | | | 108,000 |
| | Walter Invt Mgmt | 7.875% Due 12-15-2021 | | | 334,688 |
| | Wamu | Pass-Thru Ctfs Ser 2005-Ar7 Cl A-2 Due 08-25-2035 | | | 15,017 |
| | Wells Fargo | Pass Thru Ctf Cl A-1 Var 12-25-34 | | | 112,239 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Corporate debt instruments (continued) | | | |
| | West Corp | 5.375% Due 07-15-2022 | | | $ 215,438 |
| | Westmoreland Coal | 8.75% Due 01-01-2022 | | | 442,125 |
| | Weyerhaeuser Co | 7.375% Due 10-01-2019 | | | 238,604 |
| | Wideopenwest Fin | 10.25% Due 07-15-2019 | | | 848,619 |
| | Wind Acqstn Fin | 6.5% Due 04-30-2020 | | | 409,000 |
| | Windstream Corp | 7.5 Due 04-01-2023 | | | 696,500 |
| | Wmg Acquisition Corp | 6.75 Due 04-15-2022 | | | 455,000 |
| | Wmg Acquisition Corp | 6% Due 01-15-2021 | | | 500,000 |
| | | | | | |
| | | | | | |
| | | | | | |
| | Foreign government obligations | | | | |
| | Bonos Y Oblig Del Estado | 3.8% 30/04/2024 | | | 1,158,860 |
| | Bonos Y Oblig Del Estado | Bd 0.0% 31/01/2023 | | | 475,103 |
| | Brazil (Fed Rep of) | 10% T-Nts 01/01/18 | | | 370,138 |
| | Brazil(Fed Rep of) | 10% T-Nts 01/01/23 | | | 1,216,110 |
| | Brazil(Fed Rep of) | 10% T-Nts 01/01/25 | | | 2,886,893 |
| | Brazil(Fed Rep of) | 10% T-Nts 01/01/21 | | | 1,040,170 |
| | Brazil(Fed Rep of) | 10% 01/01/17 | | | 150,525 |
| | Brazil(Fed Rep of) | 2.625 Due 01-05-2023 | | | 1,597,050 |
| | Brazil(Fed Rep of) | 5% Bds 27/01/45 Usd1000 | | | 221,426 |
| | Chile Rep | Chile Rep Nt 3.125% Due 03-27-2025 Reg | | | 199,000 |
| | Colombia (Rep of) | 10% Bds 24/07/24 | | | 1,987,062 |
| | Colombia (Rep of) | Global Bd 4% Due 02-26-2024 | | | 281,188 |
| | Croatia (Rep of) | 6.75 Due 11-05-2019 | | | 219,000 |
| | Croatia (Rep of) | 6.75% Bds 05/11/19 Usd'Regs | | | 231,000 |
| | Croatia (Rep of) | Bd 5.5% 04/04/2023 | | | 255,045 |
| | Dominican Republic | 7.5 Due 05-06-2021 | | | 126,089 |
| | Dominican Republic | 5.875% Bds 18/04/24 Tbond | | | 143,500 |
| | Fed Rep of Nigeria | 16.39% Bds 27/01/22 | | | 311,182 |
| | Fed Rep of Nigeria | Bond 16.0% 29/06/2019 | | | 183,380 |
| | Greece (Rep of) | Tb 16/01/15 Eur | | | 846,411 |
| | Greece (Rep of) | Hellenic 09/01/2015 | | | 1,935,827 |
| | Guatemala (Rep of) | 8.125 Bds 06/10/34 8.125 Due 10-06-2034 | | | 130,500 |
| | Hungary (Rep of) | 6% Bds 24/11/2023 | | | 182 |
| | Hungary (Rep of) | 6.5% Bds 24/06/19 | | | 87,741 |
| | Hungary (Rep of) | 6.75% Bds 24/11/17 | | | 256,509 |
| | Hungary (Rep of) | Nt 4 Due 03-25-2019 | | | 698,700 |
| | Hungary (Rep of) | Nt 4.0% Due 25/03/19 | | | 166,860 |
| | Hungary (Rep of) | Nt 5.75 Due 11-22-2023 | | | 367,690 |
| | Hungary (Rep of) | 5.75% Bds 22/11/23 | | | 360,450 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Foreign government obligations (continued) | | | |
| | Hungary (Rep of) | 6.375% Nts 29/03/21 | | | $ 135,479 |
| | Indonesia(Rep of) | 7.875% Snr 15/04/2019 | | | 446,528 |
| | Indonesia(Rep of) | 8.375% Bds 15/03/24 | | | 1,509,687 |
| | Indonesia(Rep of) | 3.375 Due 04-15-2023 | | | 269,325 |
| | Indonesia(Rep of) | 4.875% Mtn 05/21 | | | 642,056 |
| | Indonesia(Rep of) | 5.5% Bds 15/01/2024 | | | 877,688 |
| | Indonesia(Rep of) | 7.5% Bds 15/01/16 | | | 543,788 |
| | Indonesia(Rep of) | Bond 11.625 Due 03-04-2019 | | | 508,681 |
| | Indonesia(Rep of) | 6.75% 15/01/2044 | | | 359,600 |
| | Italy (Rep of) | 2.1% I/L Nts 15/09/2021 | | | 568,779 |
| | Italy (Rep of) | 2.25% Nts 22/04/17 | | | 62,363 |
| | Italy (Rep of) | 2.6% Idx/Lkd 15/09/2023 | | | 1,412,267 |
| | Italy (Rep of) | 2.35% Idx/Lkd Nts 15-09-2024 | | | 1,084,170 |
| | Kenya (Republic of) | 6.875% 24/06/2024 | | | 873,575 |
| | Kenya (Republic of) | 5.875% 24/06/2019 | | | 203,000 |
| | Korea Export Import Bank | Nt 5.125% Due 06-29-2020 | | | 563,490 |
| | Malaysia (Govt of) | 3.172% Bds 15/07/16 | | | 270,070 |
| | Malaysia (Govt of) | 3.48% Bds 15/03/23 | | | 82,770 |
| | Malaysia (Govt of) | 3.844% Bds 15/04/33 | | | 86,706 |
| | Malaysia (Govt of) | 3.892% Bds 15/03/27 | | | 134,348 |
| | Malaysia (Govt of) | 4.16% Nts 15/07/21 | | | 43,188 |
| | Malaysia (Govt of) | 4.181% Bds 15/07/24 | | | 180,983 |
| | Malaysia (Govt of) | 4.24% Bds 07/02/18 | | | 1,319,111 |
| | Malaysia (Govt of) | 4.262% Bds 15/09/2016 | | | 819,893 |
| | Mex Bonos Desarr | 4.75% 14/06/18 | | | 98,955 |
| | Mexican Cetes | Indxlinkd 4.0% 08/11/2046 | | | 743,511 |
| | New Zealand | Idx/Lkd Bds 20/09/2025 | | | 2,736,579 |
| | New Zealand | Idx/Lkd Bds 20/09/2030 | | | 176,538 |
| | Panama Rep | 5.2% Due 01-30-2020 Reg | | | 358,313 |
| | Paraguay Rep | 4.625% Due 01-25-2023 | | | 406,000 |
| | Paraguay Rep | 6.1% Due 11/08/2044 | | | 214,000 |
| | Philippines Rep | Global Bd 6.375% Due 01-15-2032 | | | 307,850 |
| | Philippines Rep | Global Bd 6.375% Due 10-23-2034 | | | 242,540 |
| | Philippines Rep | 6.375% Bds 23/10/34 | | | 134,250 |
| | Philippines Rep | 9.375% Bds 18/01/17 | | | 146,566 |
| | Poland (Rep of) | 2.5% Bds 25/07/18 | | | 1,056,018 |
| | Poland (Rep of) | 3.25% Bds 25/07/19 | | | 773,903 |
| | Poland (Rep of) | 4% Bds 25/10/23 | | | 202,101 |
| | Poland (Rep of) | 6.375% Bds 15/07/19 | | | 234,550 |
| | Poland (Rep of) | 4% Due 01-22-2024 | | | 1,220,438 |
| | Republic of Ecuador | 7.95 Due 06-20-2024 Reg | | | 414,675 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Foreign government obligations (continued) | | | |
| | Republic of Peru | 144A 5.7% 12/08/2024 | | | $ 473,947 |
| | Romania (Rep of) | 5.95% Nts 11/06/21 | | | 237,504 |
| | Romania (Rep of) | 5.9% Bds 26/07/2017 | | | 162,298 |
| | Romania (Rep of) | 4.375 Due 08-22-2023 | | | 851,513 |
| | Romania (Rep of) | 4.375% Snr Mtn 22/08/23 Usd | | | 733,038 |
| | Romania (Rep of) | 4.875% Snr 22/1/24 | | | 1,456,350 |
| | Romania (Rep of) | 6.125% 22/01/44 | | | 162,643 |
| | Russian Federation | 7% Bds 16/08/23 | | | 467,385 |
| | Russian Federation | 7.5% Bds 27/02/19 | | | 115,725 |
| | Russian Federation | 6.2% Bds 31/01/2018 | | | 551,025 |
| | Serbia (Rep) | 5.875% 03/12/2018 | | | 502,800 |
| | Socialist Rep Of Vietnam | 4.8% 19/11/2024 | | | 784,700 |
| | South Africa Rep | 4.665% 17/01/2024 | | | 104,000 |
| | South Africa Rep | 4.665 Due 01-17-2024 | | | 269,100 |
| | South Africa Rep | 5.875% Due 09-16-2025 | | | 574,387 |
| | South Africa Rep | 6.25% Bds 31/03/36 | | | 157,052 |
| | South Africa Rep | 10.5% Bds 21/12/2026 | | | 1,365,305 |
| | Spain (Kingdom of) | 0.55% Idx/Lkd Bds 11/19 | | | 612,273 |
| | Sri Lanka(Republic of) | 6.25% Due 07-27-2021 | | | 324,725 |
| | Sri Lanka(Republic of) | Due 07-25-2022 | | | 203,250 |
| | Thailand(Kingdom) | 3.25% Bds 16/06/17 | | | 402,617 |
| | Thailand(Kingdom) | 3.625% Bds 16/06/23 | | | 324,495 |
| | Thailand(Kingdom) | 3.875% Bds 13/06/19 | | | 735,915 |
| | Thailand(Kingdom) | 1.2% I/L 14/07/21 | | | 711,837 |
| | Turkey (Rep of) | 7.1% Bds 08/03/23 Try100 | | | 519,082 |
| | Turkey (Rep of) | 8.3% Bds 20/06/18 Try100 | | | 1,710,798 |
| | Turkey (Rep of) | 9% Bds 08/03/17 Try1000 | | | 87,819 |
| | Turkey (Rep of) | 9.5% Bds 12/01/22 Try100 | | | 204,872 |
| | Turkey (Rep of) | 5.75% Due 22/03/2024 | | | 1,122,500 |
| | Turkey (Rep of) | 5.75% Due 03-22-2024 | | | 290,550 |
| | Ukraine | 9.25% Due 24/07/2017 | | | 250,000 |
| | United Mexican States | 7.5% Mbonos 03/06/27 | | | 683,673 |
| | United Mexican States | 10 Due 12-05-2024 | | | 1,025,870 |
| | United Mexican States | 3.6% Due 01-30-2025 Reg | | | 518,180 |
| | United Mexican States | 4.75% 08/03/2044 | | | 278,635 |
| | United Mexican States | 3.5 01-21-2021 | | | 296,090 |
| | United Mexican States | Medium Term Nts 3.625 Due 03-15-2022 | | | 93,978 |
| | United Mexican States | Medium Term Nts bond 4 Due 10-02-2023 | | | 170,150 |
| | United Mexican States | Mtn Tranche # Tr 00019 5.625 Due 01-15-2017 | | | 271,250 |
| | United Mexican States | 4% Udi Idx 15/11/40 | | | 730,435 |
| | United Mexican States | 4.5% Index Linked Bds22/11/35 | | | 1,535,927 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Foreign government obligations (continued) | | | |
| | Uruguay (Rep of) | 4.125% Nts 20/11/45 | | | $ 211,500 |
| | Waha Aerospace B V | 144A 3.925 Due 07-28-2020 | | | 439,950 |
| | | | | | |
| | Commit to purchase agreements | | | | |
| | Repurchase agreement | W/Citigroup .14% From 12-31-2014 To 01-02-2015 | | | 13,800,000 |
| | Repurchase agreement | W/Deutsche .1% From 12-31-2014 To 01-02-2015 | | | 6,500,000 |
| | Repurchase agreement | W/Chase Sec .14% From 12-31-2014 To 01-02-2015 | | | 3,600,000 |
| | | | | | |
| | Municipal government obligations | | | |
| | Ont (Prov of) | 1.875 Due 09-15-2015 | | | 505,139 |
| | Bay Area Toll Auth Calif | 7.043% 04-01-2050 Taxable | | | 372,187 |
| | California St | 5.7% 11-01-2021 Taxable | | | 117,884 |
| | California St | 7.7% 11-01-2030 Taxable | | | 126,197 |
| | California St | 7.95 03-01-2036 Taxable | | | 124,194 |
| | Indiana St Fin Auth Rev | 6.596% 02-01-2039 Taxable | | | 995,108 |
| | Los Angeles Cnty Calif Pub Wks | 6.091% 08-01-2022 Taxable | | | 484,324 |
| | Metro Wastewtr Reclamation | 5.018% 04-01-2020 Taxable | | | 471,295 |
| | Michigan St Univ Revs | 6.173% 02-15-2050 Taxable | | | 607,445 |
| | New York St Dorm Auth | 5.289% 03-15-2033 Taxable | | | 593,145 |
| | Seminole Cnty Fla Wtr & Swr | 6.443% 10-01-2040 Taxable | | | 469,216 |
| | Texas Transn Commn St Hwy | 5.028% 04-01-2026 Taxable | | | 582,855 |
| | | | | | |
| | Swaps/Options/Futures | | | | |
| | IRS | DEUTGB2L 6MLIBOR | | | 446,075 |
| | IRS | CITIUS33 6M 3.45%/3MLIBOR | | | 5,227 |
| | IRS | RBOSGB2RTCM 3.45 / LIBOR | | | 8,364 |
| | Deutsche Bank | Cash Collateral | | | 580,000 |
| | Citibank | Cash Collateral | | | 51,000 |
| | RPI | 3.125% BNPAFRPP 15/12/2024 SWU09OBG9 | | | 1,179 |
| | RPI | 3.17% CITIUS33 08/12/2024SWU09RX78 | | | 13,870 |
| | RPI | 3.45% GSCMUS33 15/12/2044SWU09OCL7 | | | 1,895 |
| | RPI | 3.45% GSCMUS33 15/12/2044SWU09OCL7 | | | 1,895 |
| | RPI | 3.5% BARCGB33 15/10/2044 SWU09OA21 | | | 14,045 |
| | RPI | 3.5% BOFAUS6NGFX 15/10/2044 SWU09OA39 | | | 7,022 |
| | RPI | 3.5% CSFPGB2L 15/10/2044 SWU09OA47 | | | 7,022 |
| | RPI | 3.51% GSCMUS33 15/12/2044SWU09OBS3 | | | 6,045 |
| | RPI | 3.5275% CSFPGB2L 23/09/2044 SWU09TT20 | | | 9,714 |
| | RPI | 3.5275% CSFPGB2L 23/09/2044 SWU09TT20 | | | 9,714 |
| | RPI | 3.5275% CSFPGB2L 23/09/2044 SWU09TT20 | | | 9,715 |
| | CSFBUS | Sell Protection on CDX | | | 32,931 |
| | Goldman Sachs International | Sell Protection on BP Cap Mkts | | | 2,253 |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Swaps/Options/Futures (continued) | | | |
| | Chase | Sell Protection on BP Cap Mkts | | | $ 11,266 |
| | Chase | Sell Protection on Qatar (State of) | | | 1,526 |
| | Bank of America | Sell Proteection on Barrick Gold Corp | | | 921 |
| | Deutsche Bank | Sell Protection on Qatar (State of) | | | 763 |
| | Societe Generale | Fx Deal - 19 Dec, 2014 Nzd Usd Ex.Rate 1.287537 | | | 16,717 |
| | JP Morgan Chase Bank | Fx Deal - 29 Dec, 2014 Nzd Usd Ex.Rate 7.832200 | | | 23 |
| | Credit Suisse International | Fx Deal - 28 Jul, 2014 Usd Brl Ex.Rate 0.430200 | | | 18,930 |
| | Credit Suisse International | Fx Deal - 06 Aug, 2014 Usd Brl Ex.Rate 0.421976 | | | 77,839 |
| | Citibank N.A. | Fx Deal - 22 Aug, 2014 Usd Brl Ex.Rate 0.427332 | | | 324,669 |
| | JP Morgan Chase Bank, N.A. | Fx Deal - 15 Sep, 2014 Usd Brl Ex.Rate 0.415196 | | | 75,997 |
| | Bnp Paribas Paris | Fx Deal - 12 Nov, 2014 Usd Brl Ex.Rate 0.384889 | | | 10,481 |
| | Deutsche Bank Ag | Fx Deal - 02 Dec, 2014 Usd Brl Ex.Rate 0.368595 | | | 77,690 |
| | Credit Suisse International | Fx Deal - 02 Dec, 2014 Usd Brl Ex.Rate 0.366367 | | | 10,249 |
| | HSBC Bank Usa, N.A. | Fx Deal - 31 Dec, 2014 Usd Brl Ex.Rate 0.376477 | | | 951 |
| | Deutsche Bank Ag | Fx Deal - 31 Dec, 2014 Usd Brl Ex.Rate 0.376477 | | | 3,993 |
| | Citibank N.A. | Fx Deal - 10 Dec, 2014 Usd Cad Ex.Rate 0.872737 | | | 715 |
| | Citibank N.A. | Fx Deal - 12 Dec, 2014 Usd Eur Ex.Rate 1.244359 | | | 24,881 |
| | JP Morgan Chase Bank, N.A. | Fx Deal - 17 Dec, 2014 Usd Eur Ex.Rate 1.240004 | | | 40,775 |
| | Citibank N.A. | Fx Deal - 22 Dec, 2014 Usd Eur Ex.Rate 1.225940 | | | 154,509 |
| | Bnp Paribas Paris | Fx Deal - 28 Nov, 2014 Usd Eur Ex.Rate 1.247757 | | | 5,236 |
| | Jpmorgan Chase Bank, N.A. | Fx Deal - 24 Nov, 2014 Usd Eur Ex.Rate 1.240170 | | | 234,694 |
| | Credit Suisse International | Fx Deal - 09 Dec, 2014 Usd Gbp Ex.Rate 1.562473 | | | 1,009 |
| | Deutsche Bank Ag | Fx Deal - 26 Nov, 2014 Usd Jpy Ex.Rate 0.008480 | | | 419 |
| | Bank Of America, N.A | Fx Deal - 07 Nov, 2014 Usd Krw Ex.Rate 0.000918 | | | �� 1,043 |
| | Scblgb2L | Fx Deal - 07 Nov, 2014 Usd Krw Ex.Rate 0.000917 | | | 582 |
| | Bank Of America, N.A | Fx Deal - 07 Nov, 2014 Usd Krw Ex.Rate 0.000915 | | | 247 |
| | Barclays Bank PLC Wholesale | Fx Deal - 12 Nov, 2014 Usd Mxn Ex.Rate 0.073361 | | | 15,919 |
| | JP Morgan Chase Bank, N.A. | Fx Deal - 04 Dec, 2014 Usd Mxn Ex.Rate 0.070713 | | | 45,599 |
| | Royal Bank Of Canada | Fx Deal - 03 Dec, 2014 Usd Mxn Ex.Rate 0.070706 | | | 45,493 |
| | Standard Chartered Bank | Fx Deal - 04 Dec, 2014 Usd Mxn Ex.Rate 0.070731 | | | 28,899 |
| | Barclays Bank Plc Wholesale | Fx Deal - 18 Dec, 2014 Usd Mxn Ex.Rate 0.068403 | | | 3,718 |
| | Brothers Harriman & Co | Fx Deal - 30 Dec, 2014 Usd Mxn Ex.Rate 0.133859 | | | 8 |
| | Credit Suisse London | Fx Deal - 31 Dec, 2014 Usd Mxn Ex.Rate 0.134643 | | | 121 |
| | Credit Suisse London | Fx Deal - 30 Dec, 2014 Usd Mxn Ex.Rate 0.134643 | | | 16 |
| | | | | | |
| | Stapled Securities | | | | |
| | Investa Office Fd Units | 269,167 Shares; Stapled Securities | | | 469,181 |
| | Rolls Royce Holdings Entitlement | 96,252 Shares; Stapled Securities | | | 448,189 |
| | Goodman Group | 76,134 Shares; Stapled Securities | | | 226,788 |
| | | | | | |
| | | | | | |
| | | | | (continued) |
| MORGAN STANLEY 401(k) PLAN | | | |
| Plan Number 003, Employer Identification Number 20-8764829 | | | |
| FORM 5500, SCHEDULE H, LINE 4i — | | | |
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | | | |
| AS OF DECEMBER 31, 2014 | | | | |
| | | | | | (e) |
| | (b) | (c) | (d) | | Current |
| (a) | Identity of Issuer | Description of Investment | Cost** | | Value |
| | Common collective trusts | | | | |
| * | BNY Mellon | Mellon S&P 500 Index Non-Lendable Fund; 3,577,119 shares | | | $ 755,594,853 |
| * | Blackrock | Extended Equity Market Lendable Fund; 3,162,115 shares | | | 154,876,294 |
| * | Blackrock | MSCI ACWI Ex-US Index Non-Lendable Fund; 4,860,850 shares | | | 104,490,766 |
| * | Blackrock | Bond Index Non-Lendable Fund; 6,557,538 shares | | | 87,273,617 |
| * | Blackrock | Lifepath Index 2035 Non-Lendable Fund; 14,737,980 shares | | | 200,097,552 |
| * | Blackrock | Lifepath Index 2030 Non-Lendable Fund; 9,200,753 shares | | | 125,125,643 |
| * | Blackrock | Lifepath Index 2025 Non-Lendable Fund; 8,252,065 shares | | | 112,369,188 |
| * | Blackrock | Lifepath Index 2040 Non-LendableFund; 7,067,668 shares | | | 95,721,675 |
| * | Blackrock | Lifepath Index 2020 Non-Lendable Fund; 6,945,219 shares | | | 94,183,424 |
| * | Blackrock | Lifepath Index 2045 Non-Lendable Fund; 6,209,949 shares | | | 83,841,141 |
| * | Blackrock | Lifepath Index 2050 Non-Lendable Fund; 5,114,371 shares | | | 69,890,954 |
| * | Blackrock | Lifepath Index 2055 Non-Lendable Fund; 2,604,625 shares | | | 42,627,038 |
| * | Blackrock | Lifepath Index Retirement Non-Lendable Fund; 10,899,433 shares | | | 152,895,066 |
| * | Northern Trust | Short Term Investment Fund | | | 10,116,884 |
| * | Northern Trust | Short Term Investment Fund | | | 2,915,536 |
| * | Systematic | Short Term Investment Fund | | | 927,246 |
| * | Northern Trust | Short Term Investment Fund | | | 828,006 |
| | | | | | |
| | | | | | |
| | Participant-directed investments at fair value | | | $ 7,940,478,063 |
| | | | | | |
| | | | | | |
| | | | | | |
| * | Various Participants | Participant Loans (secured by account, rates randing from | | | |
| | | 4.25% to 10.50% with maturity dates ranging from 2015 to 2029) | | | $ 97,182,449 |
| * Party-in-interest | | | | |
| ** Cost information is not required for Participant-directed investments and therefore is not included. | | | |
| | | | | |
| See Report of Independent Registered Public Accounting Firm | | | |
| | | | | |
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| | | | | |
| | | | | |
| | | | | |
| | | | (concluded) |
