11-K 1 dp57306_11k.htm FORM 11-K

 

 

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

 

 

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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.

 

 

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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.

  

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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).

 

 

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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.

  

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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.

  

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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.

  

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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).

 

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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.

  

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3.INVESTMENTS

 

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.

 

 

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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

 

 

12

 

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

 

 

13

 

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.

 

 

14

 

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.

 

 

15

 

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.

 

 

16

 

 

   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)

 

17

 

 

   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)

 

 

18

 

8.OTHER MATTERS

 

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.

 

 

19

 

 

 

 

 

SUPPLEMENTAL SCHEDULE

 

 

 

 

20

 

 

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)

 

 

21

 

 

 

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)

 

22

 

 

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)

 

23

 

 

 

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)

 

24

 

 

 

 

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)

25

 

 

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)

 

26

 

 

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)

 

 

27

 

 

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)

 

28

 

 

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)

 

29

 

 

 

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)

 

30

 

 

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)

 

31

 

 

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)

 

 

32

 

 

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)

 

 

33

 

 

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)

 

34

 

 

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)

 

 

35

 

 

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)

 

36

 

 

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)

 

37

 

 

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)

 

38

 

 

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)

 

39

 

 

 

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)

 

40

 

 

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)

 

41

 

 

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)

 

42

 

 

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)

 

43

 

 

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