Morgan Stanley plans trigger participation securities tied to SmartInvest Equity Index

By Jennifer Chiou

New York, Oct. 3 – Morgan Stanley plans to price 0% trigger participation securities due November 2020 linked to the Morgan Stanley SmartInvest Equity Index (Price Return), according to a 424B2 filing with the Securities and Exchange Commission.

The index is a quantitative, rules-based, long-only equity index that aims to invest, at any one time, in 40 stocks included in the S&P 500 index that are among the more concentrated reported positions held by hedge funds.

If the final index level is greater than the initial index level, the payout at maturity will be par plus the index return.

If the final index level is less than or equal to the initial index level but greater than or equal to the trigger level, the payout will be par. The trigger level will be 70% of the initial index level.

If the final index level is less than the trigger level, investors will lose 1% for every 1% that the final index level is less than the initial level.

The notes (Cusip: 61764C317) will price in October.

Morgan Stanley & Co. LLC is the agent.

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