Morgan Stanley Premium

Partners Fund II LP

Fund Investment Objectives

Morgan Stanley Premium Partners Fund II LP ("PPF II") seeks capital appreciation principally through investing in a concentrated group of underlying investment funds ("Investment Funds") managed by investment managers ("Investment Managers") with significant relevant experience who employ a variety of strategies. These strategies allow the Investment Managers to use leveraged or short-sale positions to take advantage of perceived inefficiencies across the global capital markets. Through the selection and ongoing monitoring of Investment Funds, the Fund seeks to achieve capital appreciation that may exhibit moderate correlation with fixed income or equity indices and aims not to be disproportionately influenced by the performance of any single Investment Fund. In addition, by constructing a portfolio that is comprised of a number of Investment Funds, the Fund seeks to achieve the desired capital appreciation with lower volatility than likely would be achieved by investing in most individual Investment Funds. Management Fee is 0.90% if greater than or equal to $200M and 1.50% if less than $200M. AUM begins January 2011.