Morgan Stanley AIP Select

Mortgage Fund LP Class A

Fund Investment Objectives

Morgan Stanley AIP Select Mortgage Fund LP ("SMF") seeks to generate attractive returns primarily through a variety of long and short mortgage-related investment strategies and provide stable diversification benefits relative to traditional asset classes with the potential to offer enhanced downside protection during challenging market environments. SMF seeks to achieve its objective principally through investing in approximately 6-12 mature and newly formed hedge funds managed by third-party investment managers who focus primarily on mortgage-related investment strategies. However, there is no guarantee that SMF will invest in at least 6 funds or not invest in more than 12 funds. Management Fee for Class A are 1.50% for less than $5M, 1.25% for $5M to $10M, 1.00% for $10M to $50M, and 0.90% for greater than $50M. AUM begins January 2011.