1.
Security
Valuation:
(1)
An
equity
portfolio
security
listed
or
traded
on
an
exchange
is
valued
at
its
latest
reported
sales
price
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price),
and
if
there
were
no
sales
on
a
given
day
and
if
there
is
no
official
exchange
closing
price
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
exchanges.
If
only
bid
prices
are
available
then
the
latest
bid
price
may
be
used.
Listed
equity
securities
not
traded
on
the
valuation
date
with
no
reported
bid
and
asked
prices
available
on
the
exchange
are
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers.
In
cases
where
a
security
is
traded
on
more
than
one
exchange,
the
security
is
valued
on
the
exchange
designated
as
the
primary
market;
(2)
all
other
equity
portfolio
securities
for
which
over-the-counter
(“OTC”)
market
quotations
are
readily
available
are
valued
at
the
latest
reported
sales
price
(or
at
the
market
official
closing
price
if
such
market
reports
an
official
closing
price),
and
if
there
was
no
trading
in
the
security
on
a
given
day
and
if
there
is
no
official
closing
price
from
relevant
markets
for
that
day,
the
security
is
valued
at
the
mean
between
the
last
reported
bid
and
asked
prices
if
such
bid
and
asked
prices
are
available
on
the
relevant
markets.
An
unlisted
equity
security
that
does
not
trade
on
the
valuation
date
and
for
which
bid
and
asked
prices
from
the
relevant
markets
are
unavailable
is
valued
at
the
mean
between
the
current
bid
and
asked
prices
obtained
from
one
or
more
reputable
brokers/dealers;
(3)
fixed
income
securities
may
be
valued
by
an
outside
pricing
service/vendor
approved
by
the Trustees.
The
pricing
service/vendor
may
employ
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
If the
Adviser
or
Morgan
Stanley
Investment
Management
Limited (“MSIM
Limited”)
(Eaton
Vance
High
Yield
ETF) or
Paramet-
ric
Portfolio
Associated
LLC
(the
“Sub-Advisers”)
(Parametric
Equity
Plus
ETF,
Parametric
Equity
Income
ETF
and
Paramet-
ric
Hedged
Equity
ETF)
each a
wholly-owned
subsidiary
of
Morgan
Stanley,
determines
that
the
price
provided
by
the
outside
pricing
service/vendor
or
exchange
does
not
reflect
the
security’s
fair
value
or
is
unable
to
provide
a
price,
prices
from
brokers
or
dealers
may
also
be
utilized.
In
these
circumstances,
the
value
of
the
security
will
be
the
mean
of
bid
and
asked
prices
obtained
from
reputable brokers/dealers;
(4)
listed
options
are
valued
at
the
last
reported
sales
price
on
the
exchange
on
which
they
are
listed
(or
at
the
exchange
official
closing
price
if
such
exchange
reports
an
official
closing
price).
If
an
official
closing
price
or
last
reported
sales
price
is
unavailable,
the
listed
option
should
be
fair
valued
at
the
mean
between
its
latest
bid
and
ask
prices.
Unlisted
options
are
valued
at
the
mean
between
their
latest
bid
and
ask
prices
from
a
broker/dealer
or
valued
by
a
pricing
service/vendor;
(5)
futures
are
valued
at
the
settlement
price
on
the
exchange
on
which
they
trade
or,
if
a
settlement
price
is
unavailable,
at
the
last
sale
price
on
the
exchange; (6)
when
market
quotations
are
not
readily
available,
as
defined
by
Rule
2a-5
under
the
Act,
including
circumstances
under
which
the
Adviser
determines
that
the
closing
price,
last
sale
price
or
the
mean
between
the
last
reported
bid
and
asked
prices
are
not
reflective
of
a
security’s
market
value,
portfolio
securities
are
valued
at
their
fair
value
as
determined
in
good
faith
under
procedures
established
by
and
under
the
general
supervision
of
the
Trustees;
(7)
senior loans
are
valued
using
a
price
provided
by
an
approved
valuation
vendor
and
if
a
valuation
is
not
available
from
any
of
the
approved
valuation
vendor,
then
a
quote
from
the
broker/dealer
will
be
used;
(8)
investments
in
Exchange
Traded
Funds
are
valued
at
market
price;
(9)
OTC
swaps
may
be
valued
by
an
outside
pricing
service
approved
by
the
Trustees
or
quotes
from
a
reputable
broker/dealer.
Swaps
cleared
on
a
clearinghouse
or
exchange
may
be
valued
using
the
closing
price
provided
by
the
clearinghouse
or
exchange; (10) foreign
exchange
transactions
(“spot
contracts”) and
foreign
exchange
forward
contracts
(“forward
contracts”)
are
valued
daily
using
an
independent
pricing
vendor
at
the
spot
and
forward
rates,
respec-
tively,
as
of
the
close
of
the
New
York
Stock
Exchange;
and (11)
investments
in
mutual
funds,
including
the
Morgan
Stanley
Institutional
Liquidity
Funds,
are
valued
at
the
net
asset
value
(“NAV”)
as
of
the
close
of
each
business
day.
In
connection
with
Rule
2a-5
of
the
Act,
the
Trustees
have
designated
the
Trust's
Adviser
as
its
valuation
designee.
The
valu-
ation
designee
has
responsibility
for
determining
fair
value
and
to
make
the
actual
calculations
pursuant
to
the
fair
valuation
methodologies
previously
approved
by
the
Trustees.
Under
procedures
approved
by
the
Trustees,
the
Trust’s
Adviser
has
formed
a
Valuation
Committee
whose
members
are
approved
by
the
Trustees.
The
Valuation
Committee
provides
administration
and
oversight
of
the
Trust’s
valuation
policies
and
procedures,
which
are
reviewed
at
least
annually
by
the
Trustees.
These
proce-
dures
allow
the Trust
to
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers
and
other
market
sources
to
determine
fair
value.