DESCRIPTION OF UNITS OF
LIMITED PARTNERSHIP INTEREST
The following description summarizes certain terms of units of limited partnership interest of Morgan Stanley Smith Barney Spectrum Select L.P. (the Partnership). As of December 31, 2019, the Partnership had one class of limited partnership interest units registered under Section 12 of the Securities Exchange Act of 1934, as amended.
This description does not purport to be complete and is qualified in its entirety by reference to the Eighth Amended and Restated Limited Partnership Agreement of the Partnership, dated as of December 8, 2017 (the Partnership Agreement), as amended or restated from time to time, which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit is a part. We encourage you to read the Partnership Agreement and the applicable provisions of Delaware law for additional information.
Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Annual Report on Form 10-K to which this Description of Units of Limited Partnership Interest is attached as an exhibit.
Description of the Units
Units of limited partnership interest (the Units) are offered as of the last day of each month. Investors must subscribe for Units prior to the month-end closing date, investors will not know the actual per Unit purchase price until after the monthly closing has occurred. The purchase price of each Unit will be equal to 100% of the Partnerships net asset value per Unit as of the month-end closing date. Units are offered to investors who have a brokerage account with Morgan Stanley & Co. Incorporated.
No distributions have been made by the Partnership since it commenced trading operations on August 1, 1991. The General Partner has sole discretion to decide what distributions, if any, will be made to limited partners. The General Partner does not intend to declare distributions in the foreseeable future.
Generally, a limited partner may redeem some or all of his or her Units as of the end of each month (a Redemption Date) by requesting that his or her financial advisor or private wealth advisor provide a request for redemption to the General Partner by no later than 3:00 p.m. New York City time, on the last day of the month in which the redemption is to be effective.
Limited partners may not redeem their Units until the limited partner has been an investor for at least six months. If an investor redeems their Units within 24 months after the Units are purchased, the investor will pay a redemption charge, except in defined circumstances. Units are not subject to a redemption charge after limited partners have owned them for over 24 months. Unless a limited partner is redeeming their entire interest in the Partnership, redemptions may only be made in whole Units, with a minimum of 50 Units required for each redemption.
Limited partners may redeem their Units in the Partnership after the limited partner has been an investor for six months and use the proceeds to purchase Units in one or more of the other partnerships in