Please consider the investment objectives, risks, charges and expenses of the Absolute Return Fund and the Absolute Return Fund STS, as applicable, carefully before investing. The prospectus for each of the Funds contains this and other information about the relevant Fund and can be obtained by contacting your financial professional. Please read the prospectus of the relevant Fund carefully before investing.

Each of the Absolute Return Fund and the Absolute Return Fund STS is a Delaware statutory trust that issues shares.

Morgan Stanley does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. It was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Federal and state tax laws are complex and constantly changing. Your clients should always consult their own legal or tax advisor for information concerning their individual situations.

Morgan Stanley Distribution, Inc. is a principal underwriter of the Funds. Morgan Stanley is a full-service securities firm engaged in securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services.

Past performance is not indicative of future returns.

Risk Considerations

Alternative investments, like the Absolute Return Fund and the Absolute Return Fund STS are speculative and include a high degree of risk.

Investors could lose all or a substantial amount of their investment. The Funds are suitable only for long-term investors willing to forgo liquidity and put capital at risk for an indefinite period of time. The Funds are highly illiquid - there is no secondary market for the shares of these Funds, and there are restrictions on redemptions or assigning or otherwise transferring interests in these Funds. The Funds have higher fees and expenses than other investment vehicles, and such fees and expenses will lower the returns achieved by investors. Funds of funds often have a higher fee structure than single manager funds as a result of the additional layer of fees. The underlying funds in which the Funds invest (the "Underlying Funds") often engage in leverage and other speculative practices that may increase volatility and risk of loss. The Underlying Funds are often unregulated, and are not subject to the same regulatory requirements as mutual funds, and are not required to provide periodic pricing or valuation information to investors. 

See Risk Factors and Other Considerations for important disclosures. Investment in the Fund involves a high degree of risk and is suitable only for investors who can bear the risks associated with limited liquidity and therefore should be viewed as a long-term investment. For a complete description of terms and conditions, fees and other expenses, see the Fund's prospectus.

The Fund is offering shares solely pursuant to its prospectus, and any information regarding the Fund or shares in the Fund that is not contained in the relevant prospectus shall not constitute an offering of shares in the Fund. Consequently, this material has been prepared solely for informational purposes and is not an offer, or a solicitation of an offer, to buy or sell shares of the Funds or any other security or instrument or to participate in any trading strategy. No person or entity has been authorized in connection with this offering to give any information or make any representations other than as contained in the prospectus or in this marketing material. This does not constitute an offer to, or solicitation of, such person or entity.

Fund net return is unaudited and subject to change and represents the total return based on information received from ARF's underlying managers. The return is equal to the change in value of the Fund, including capital appreciation and income, as a percentage of the beginning value. The amount earned is the difference between the beginning and ending values, adjusted for the net of all contributions and withdrawals. The rate of return is calculated on a time-weighted basis for all investments and is net of 1) underlying manager fees; 2) broker commissions and expenses related to trading and the administration of ARF's underlying managers' funds and the Fund; 3) the reinvestment of dividends and capital gains; 4) the 1.00% (1.50% prior to May 1, 2015) per annum management fee; 5) the 0.75% (0.25% prior to May 1, 2015) per annum shareholder servicing fee; and 6) operating expenses. 

^a In parallel with ARF, subject to authorization by Board of Trustees, generally in an amount up to 15% of NAV of ARF.

^b The Acquired Fund Fees and Expenses include the operating expenses (2.33%), trading expenses (3.32%) and performance-based incentive fees of the Investment Funds in which the Master Fund was invested (3.00%) for the period ended December 31, 2021. The operating expenses consist of management fees, administration fees, professional fees (i.e., audit and legal fees), and other operating expenses. Trading expenses are primarily interest and dividend expenses and are the byproduct of leveraging or hedging activities employed by the Investment Managers in order to enhance the Investment Funds’ returns. The information used to determine the Acquired Fund Fees and Expenses is generally based on the most recent shareholder reports received from the respective Investment Funds or, when not available, from the most recent communication from the Investment Funds. The agreements related to investments in Investment Funds provide for compensation to the Investment Funds’ managers/general partners in the form of management fees generally ranging from 1.0% to 3.0% annually of net assets and performance incentive allocations generally ranging from 10% to 30% of net profits earned. Some Investment Funds employ a pass-through expense arrangement with no stated management fee. Fees and expenses of Investment Funds are based on historical fees and expenses. Future Investment Funds’ fees and expenses may be substantially higher or lower because certain fees are based on the performance of the Investment Funds, which may fluctuate over time.

^c The Total Annual Fund Expenses include the Fund’s Management Fee (1.00%), Acquired Fund Fees and Expenses (8.65%), Interest Payments on Borrowed Funds (0.31%) and Other Expenses (1.48%).