ALTERNATIVE INVESTMENT PARTNERS ABSOLUTE RETURN FUND Financial Statements with Report of Independent Registered Public Accounting Firm For the Year Ended December 31, 2023

Oath and Affirmation To the best of my knowledge and belief, the information contained in this document is accurate and complete. Lee Spector, Executive Director of Morgan Stanley Alternative Investment LLC, the General Partner of Morgan Stanley AIP GP LP, the Commodity Pool Operator of Alternative Investments Partners Absolute Return Fund (This oath is required by Section 4.12(c)(3) of the Commodity Futures Trading Commission Regulations under the Commodity Exchange Act, as amended.)

Alternative Investment Partners Absolute Return Fund Financial Statements with Report of Independent Registered Public Accounting Firm For the Year Ended December 31, 2023 Contents Management’s Discussion of Fund Performance (Unaudited)……………………………………...1 Report of Independent Registered Public Accounting Firm 4 Audited Financial Statements Statement of Assets and Liabilities 5 Statement of Operations 6 Statements of Changes in Net Assets 7 Statement of Cash Flows 8 Schedule of Investments 9 Notes to Financial Statements 14 Proxy Voting Policies and Procedures and Proxy Voting Record (Unaudited) 27 Quarterly Portfolio Schedule (Unaudited) 27 U.S. Privacy Policy (Unaudited) 28 Information Concerning Trustees and Officers (Unaudited) 30

1 Alternative Investment Partners Absolute Return Fund Management’s Discussion of Fund Performance Investment Objective and Strategy Summary The Fund’s investment objective is to seek capital appreciation principally through investing in investment funds (“Investment Funds”) managed by third party investment managers who employ a variety of “absolute return” investment strategies in pursuit of attractive risk-adjusted returns consistent with the preservation of capital. The Fund invests substantially all its assets in private investment funds (commonly referred to as hedge funds) that are managed by a select group of alternative investment managers that employ different “absolute return” investment strategies in pursuit of attractive risk-adjusted returns consistent with the preservation of capital. “Absolute return” refers to a broad class of investment strategies that are managed without reference to the performance of equity, debt and other markets. “Absolute return” investment strategies allow unaffiliated third-party investment managers the flexibility to use leveraged or short-sale positions to take advantage of perceived inefficiencies across the global capital markets. These strategies are in contrast to the investment programs of “traditional” registered investment companies, such as mutual funds. Absolute return strategies can be contrasted with “relative return strategies” which generally seek to outperform a corresponding benchmark equity or fixed income index. The Fund seeks attractive “risk-adjusted” returns, which are returns adjusted to take into account the volatility of those returns. The Fund intends to invest in private investment funds that employ the following principal strategies: relative value strategies, security selection strategies, specialist credit strategies and directional strategies. Performance Discussion Total Returns One Year Five Years Ten Years Alternative Investment Partners Absolute Return Fund 6.53% 6.91% 4.96% Average Annual

2 Alternative Investment Partners Absolute Return Fund Management’s Discussion of Fund Performance (continued) Performance Discussion (continued) The chart below illustrates the growth of a hypothetical $50,000 investment in the Fund over the ten years ending December 31, 2023. Performance data quoted represents past performance, which is not predictive of future results, and current performance may be lower or higher than the figures shown. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During the twelve months ended December 31, 2023, the Fund returned 6.53% (excluding sales load), outperforming bonds (Bloomberg US Aggregate Bond Index +5.53%) and cash (1 month SOFR +5.20%), but underperforming equities (S&P 500 Total Return Index +26.29%). The Fund continued its recent history of generating positive returns untethered from the performance of stocks – the Fund’s 3 year beta to the S&P 500 Total Return Index at December 31, 2023 is 0.00. In 2022, the Fund’s limited equity beta benefited the Fund as equities declined; in 2023 the Fund’s limited equity beta resulted in the Fund receiving little to no benefit from the equity rally.

3 Alternative Investment Partners Absolute Return Fund Management’s Discussion of Fund Performance (continued) Performance Discussion (continued) Each of the Fund’s eleven strategies generated positive results in 2023: CTA/Managed Futures 0.92% Distressed 0.55% Equity L/S High Hedge 2.54% Equity L/S Opportunistic 0.34% Event Driven Credit 0.51% Fixed Income Arbitrage 0.62% Macro 0.27% Multi Strategy 0.02% Other Directional 0.09% Private Placements 0.45% Statistical Arbitrage 3.43% Statistical Arbitrage funds (+9.20% average return in 2023), which carry little to no net equity beta, generated positive results in each quarter, led by Torus (+15.1%) and Squarepoint Focus (+13.9%). Equity Long/Short High Hedge funds (+12.27% in 2023), with little equity beta, generated positive results in each month, profiting from multiple funds. Multi-manager platform funds (Alyeska Fund LP +16.5%, Holocene Advisors Fund LP +11.5%) generated consistently positive results, largely profiting from equity trading. Thank you for your support for the Fund.

4 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Trustees of Alternative Investment Partners Absolute Return Fund Opinion on the Financial Statements We have audited the accompanying statement of assets and liabilities of Alternative Investment Partners Absolute Return Fund (the “Fund”), including the schedule of investments, as of December 31, 2023, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund at December 31, 2023, the results of its operations and its cash flows for the year then ended and the changes in its net assets for each of the two years in the period then ended, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of December 31, 2023, by correspondence with the custodian, management of the investment funds and others. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. We have served as the auditor of one or more Morgan Stanley investment companies since 2000. Boston, Massachusetts February 29, 2024

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 5 Alternative Investment Partners Absolute Return Fund Statement of Assets and Liabilities December 31, 2023 Assets Investment in investment funds, at fair value (cost $215,071,421) $ 328,788,076 Cash and cash equivalents 1,153,775 23,871,596 641,896 32,850 Other assets 30,308 Total assets 354,518,501 Liabilities Line of credit payable 55,521,267 Payable for share repurchases 4,891,270 Management fee payable 738,567 Withholding tax payable 665,825 Shareholder servicing fee payable 547,762 Subscriptions received in advance 50,000 Transfer agent fee payable 3,903 Accrued expenses and other liabilities 355,980 Total liabilities 62,774,574 Net assets $ 291,743,927 Net assets consist of: Net capital $ 59,905,373 Total distributable earnings (loss) 231,838,554 Net assets $ 291,743,927 Net asset value per share: 127,772.707 shares issued and outstanding, no par value, 1,500,000 registered shares $ 2,283.30 Maximum offering price per share ($2,283.30 plus sales load of 3% of net asset value per share) $ 2,351.80 Due from Alternative Investment Partners Absolute Return Fund STS Withholding tax credit Receivable for investments sold

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 6 Alternative Investment Partners Absolute Return Fund Statement of Operations For the Year Ended December 31, 2023 Investment income Dividend $ 225,429 Expenses Interest expense 3,892,366 Management fees 2,941,798 Shareholder servicing fees 2,187,137 Professional fees 451,955 Accounting and administration fees 183,381 Custody fees 83,917 Registration fees 62,688 Transfer agent fees 46,956 Director fees 13,017 Other 28,124 Total expenses 9,891,339 Net investment income (loss) (9,665,910) Realized and unrealized gain (loss) from investments Net realized gain (loss) from investments in investment funds 12,626,975 Net realized gain (loss) from investments 12,626,975 Net change in unrealized appreciation/depreciation on investments in investment funds 15,592,195 Net change in unrealized appreciation/depreciation on investments 15,592,195 Net realized and unrealized gain (loss) from investments 28,219,170 Net increase (decrease) in net assets resulting from operations $ 18,553,260

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 7 Alternative Investment Partners Absolute Return Fund Statements of Changes in Net Assets For the year ended December 31, 2022 Net increase (decrease) in net assets resulting from operations: Net investment income (loss) $ (8,142,054) Net realized gain (loss) from investments 29,651,037 Net change in unrealized appreciation/depreciation on investments (4,530,619) Net increase (decrease) in net assets resulting from operations 16,978,364 Shareholder transactions Subscriptions (representing 1,114.620 shares) 2,291,485 Repurchases (representing 9,240.215 shares) (19,165,807) Net increase (decrease) in net assets from shareholder transactions (16,874,322) Total increase (decrease) in net assets 104,042 Net assets, beginning of year (representing 145,378.340 shares) 294,067,738 Net assets, end of year (representing 137,252.745 shares) $ 294,171,780 Net increase (decrease) in net assets resulting from operations: Net investment income (loss) $ (9,665,910) Net realized gain (loss) from investments 12,626,975 Net change in unrealized appreciation/depreciation on investments 15,592,195 Net increase (decrease) in net assets resulting from operations 18,553,260 Shareholder transactions Subscriptions (representing 895.404 shares) 1,953,003 Repurchases (representing 10,375.442 shares) (22,934,116) Net increase (decrease) in net assets from shareholder transactions (20,981,113) Total increase (decrease) in net assets (2,427,853) Net assets, beginning of year (representing 137,252.745 shares) 294,171,780 Net assets, end of year (representing 127,772.707 shares) $ 291,743,927 For the year ended December 31, 2023

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 8 Alternative Investment Partners Absolute Return Fund Statement of Cash Flows For the Year Ended December 31, 2023 Cash flows from operating activities Net increase (decrease) in net assets resulting from operations $ 18,553,260 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Net realized (gain) loss from investments in investment funds (12,626,975) Net change in unrealized (appreciation) depreciation on investments in investment funds (15,592,195) Purchase of investments in investment funds (66,931,932) Proceeds from sale of investments in investment funds 112,326,779 (Increase) decrease in receivable for investments sold (4,282,530) (Increase) decrease in due from Alternative Investment Partners Absolute Return Fund STS (79,234) (Increase) decrease in withholding tax credit 7,269 (Increase) decrease in other assets 5,563 Increase (decrease) in management fee payable (239,228) Increase (decrease) in shareholder servicing fee payable (179,359) Increase (decrease) in withholding tax payable 65,786 Increase (decrease) in transfer agent fee payable (7,132) Increase (decrease) in accrued expenses and other liabilities (282,433) Net cash provided by (used in) operating activities 30,737,639 Cash flows from financing activities Proceeds from advances on line of credit 22,200,000 Repayments of advances on line of credit (33,400,000) Subscriptions 1,953,003 Repurchases (22,934,116) Increase (decrease) in payable for share repurchases 2,086,433 Increase (decrease) in subscriptions received in advance 50,000 Net cash provided by (used in) financing activities (30,044,680) Net change in cash and cash equivalents 692,959 Cash and cash equivalents, at beginning of year 460,816 Cash and cash equivalents, at end of year $ 1,153,775 Supplemental disclosure of non-cash flow information: Non-cash transfer of investment funds $ 11,362,590 Supplemental disclosure of cash flow information: Cash paid during the year for interest $ 4,190,473

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 9 Alternative Investment Partners Absolute Return Fund Schedule of Investments December 31, 2023 Next First Percent of Percent Available Acquisition Fair Investment of Net Redemption Description Date Cost Value Fund Held* Assets Date** Liquidity*** Investment Funds Commodity Trading Advisors - Managed Futures Florin Court Capital Fund LP 5/1/2023 $ 10,076,384 $ 10,378,468 15.07% 3.56 % 1/31/2024 Monthly Squarepoint Core US Feeder LP 7/1/2020 18,500,000 24,549,212 1.63 8.41 3/31/2024 Monthly Total Commodity Trading Advisors - Managed Futures 28,576,384 34,927,680 11.97 Distressed Cerberus Partners, LP 11/1/2009 1,218,263 6,982,671 3.29 2.39 (a) (a) Cerberus SPV, LLC 11/1/2009 752,584 5,762,408 1.89 1.98 (a) (a) Total Distressed 1,970,847 12,745,079 4.37 Equity Long/Short - High Hedge Alyeska Fund LP 6/1/2022 14,250,000 18,127,658 0.75 6.22 3/31/2024 Monthly Holocene Advisors Fund LP 4/1/2017 12,428,356 23,884,580 0.80 8.19 3/31/2024 Quarterly Magnetar Equity Opportunities Fund LLC 2/1/2011 590,002 6,429,005 24.73 2.20 1/31/2024 Monthly North Reef Capital LP 11/1/2022 9,700,000 11,294,815 3.87 3/31/2024 Quarterly Total Equity Long/Short - High Hedge 36,968,358 59,736,058 20.48 Equity Long/Short - Opportunistic Axon Partners, LP 10/1/2007 4,310,455 1,269,701 0.54 0.44 (a) (a) Viking Global Equities LP 7/1/2023 13,425,000 14,105,827 0.26 4.83 6/30/2024 Annually Total Equity Long/Short - Opportunistic 17,735,455 15,375,528 5.27 2.94

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 10 Alternative Investment Partners Absolute Return Fund Schedule of Investments (continued) December 31, 2023 Next First Percent of Percent Available Acquisition Fair Investment of Net Redemption Description Date Cost Value Fund Held* Assets Date** Liquidity*** Investment Funds (continued) Event Driven Credit Davidson Kempner Institutional Partners, L.P. 5/1/2023 $ 11,729,622 $ 12,207,786 0.14% 4.18 % 3/31/2024 Quarterly FourSixThree Domestic Fund, LLC 8/1/2023 10,000,000 10,323,362 2.14 3.54 3/31/2024 Quarterly Olympus Peak Onshore LP 8/1/2020 2,618,713 2,774,800 4.02 0.95 3/31/2024 Quarterly Total Event Driven Credit 24,348,335 25,305,948 8.67 Fixed Income Arbitrage Elan Feeder Fund Ltd. 12/1/2023 6,863,405 6,900,468 0.16 2.37 2/29/2024 Monthly LMR Alpha Rates Trading Fund Ltd. 8/1/2022 7,919,885 9,375,193 0.24 3.21 3/31/2024 Quarterly Total Fixed Income Arbitrage 14,783,290 16,275,661 5.58 Macro Broad Reach (US) Fund LP 2/1/2020 7,512,487 12,070,292 12.82 4.13 3/31/2024 Quarterly D.E. Shaw Oculus Fund, L.L.C. 11/1/2006 4,740,145 20,187,248 0.74 6.92 3/31/2024 Quarterly Element Capital US Feeder Fund LLC 7/1/2018 8,284,028 7,753,785 0.38 2.66 3/31/2024 Quarterly Total Macro 20,536,660 40,011,325 13.71 Multi-Strategy Magnetar Capital Fund LP 1/1/2008 60,291 128,302 4.66 0.04 (a) (a) QVT SLV Onshore Ltd.(c) 3/1/2012 113,939 265,556 3.44 0.09 (a) (a) Total Multi-Strategy 174,230 393,858 0.13

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 11 Alternative Investment Partners Absolute Return Fund Schedule of Investments (continued) December 31, 2023 Next First Percent of Percent Available Acquisition Fair Investment of Net Redemption Description Date Cost Value Fund Held* Assets Date** Liquidity*** Investment Funds (continued) Other Directional BCIM Credit Opportunities, LP (b) 10/1/2014 $ 238,401 $ 1,633,752 5.06 % 0.56 % (a) (a) Burford Alternative Income Fund LP (b) 12/19/2018 100,215 3,220,443 3.16 1.10 (a) (a) Burford Alternative Income Fund II LP (b) 7/1/2022 3,043,806 3,366,380 1.98 1.16 (a) (a) Total Other Directional 3,382,422 8,220,575 2.82 Private Placement QVT Roiv Hldgs Onshore Ltd.(c) 1/1/2016 633,624 3,837,937 3.54 1.32 (a) (a) Total Private Placement 633,624 3,837,937 1.32 Statistical Arbitrage Aquatic Argo Fund LP 11/1/2023 8,500,000 8,393,397 1.86 2.88 3/31/2024 Quarterly D.E. Shaw Valence Fund, L.L.C. 1/1/2015 8,979,513 29,892,036 0.92 10.25 3/31/2024 Quarterly Squarepoint Focus US Feeder LP 9/1/2019 12,190,000 20,459,315 0.88 7.01 3/31/2024 Monthly Torus Feeder 2 LP 5/1/2022 17,050,000 22,059,230 0.52 7.56 3/31/2024 Monthly Two Sigma Spectrum U.S. Fund, LP 5/1/2011 6,886,479 17,124,797 0.72 5.87 3/31/2024 Quarterly Voloridge Fund, LP 11/1/2020 12,355,824 14,029,652 0.79 4.81 1/31/2024 Monthly Total Statistical Arbitrage 65,961,816 111,958,427 38.38 Total Investments in Investment Funds 215,071,421 328,788,076 112.70 $ 215,071,421 328,788,076 112.70 Liabilities in excess of Other Assets (37,044,149) (12.70) Total Net Assets $ 291,743,927 100.00 %

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 12 Alternative Investment Partners Absolute Return Fund Schedule of Investments (continued) December 31, 2023 Detailed information about all of the Investment Funds’ portfolios is not available. Investment Funds are non-income producing. * May represent percentage ownership of a feeder Investment Fund, which in turn invests in a master Investment Fund. May not reflect year-ended redemptions at Investment Funds. * * Investments in Investment Funds may be composed of multiple tranches. The Next Available Redemption Date relates to the earliest date after December 31, 2023 that redemption from a tranche is available. Other tranches may have an available redemption date that is after the Next Available Redemption Date. Redemptions from Investment Funds may be subject to fees. *** Available frequency of redemptions after initial lock-up period, if any. Different tranches may have different liquidity terms. (a) A portion or all of the Fund's interests in the Investment Fund have restricted liquidity. In addition to any redemption proceeds that may have already been received, the Fund will continue to receive proceeds periodically as the Investment Fund is able to liquidate underlying investments. (b) The Investment Fund contains capital commitments. The general partner of the Investment Fund may call or distribute capital on a periodic basis. (c) Fair value was determined by using significant unobservable inputs. The following table summarizes the initial commitment and unfunded amounts of the Investment Funds as of December 31, 2023, aggregated by investment strategy: Investment Funds Other Directional BCIM Credit Opportunities, LP $ 14,400,000 $ 11,847,410 Burford Alternative Income Fund LP $ 9,900,000 $ 4,316,428 Burford Alternative Income Fund II LP $ 7,000,000 $ 3,956,194 Commitments Unfunded This represents a contingent liability, an amount the Investment Fund may call capital for in the future.

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith. 13 Alternative Investment Partners Absolute Return Fund Schedule of Investments (continued) December 31, 2023 Strategy Allocation Statistical Arbitrage 38.38 % Equity Long/Short - High Hedge 20.48 Macro 13.71 Commodity Trading Advisors - Managed Futures 11.97 Event Driven Credit 8.67 Fixed Income Arbitrage 5.58 Equity Long/Short - Opportunistic 5.27 Distressed 4.37 Other Directional 2.82 Private Placement 1.32 Multi-Strategy 0.13 Total Investments in Investment Funds 112.70 % Percent of Net Assets

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements December 31, 2023 14 1. Organization Alternative Investment Partners Absolute Return Fund (the “Fund”) was organized under the laws of the State of Delaware as a statutory trust on May 12, 2005. The Fund commenced operations on January 1, 2006 and operates pursuant to an Agreement and Declaration of Trust (the “Trust Deed”). The Fund is registered under the U.S. Investment Company Act of 1940, as amended (the “1940 Act”), as a closed-end, non-diversified management investment company. The Fund’s investment objective is to seek capital appreciation principally through investing in investment funds (“Investment Funds”) managed by third-party investment managers who employ a variety of “absolute return” investment strategies in pursuit of attractive risk-adjusted returns consistent with the preservation of capital. “Absolute return” refers to a broad class of investment strategies that are managed without reference to the performance of equity, debt, and other markets. “Absolute return” investment strategies allow investment managers the flexibility to use leveraged or short-sale positions to take advantage of perceived inefficiencies across the global capital markets. The Fund may seek to gain investment exposure to certain Investment Funds or to adjust market or risk exposure by entering into derivative transactions, such as total return swaps, options, and futures. Morgan Stanley Alternative Investment Partners LP serves as the Fund’s “Special Shareholder”. The Special Shareholder shall make such contributions to the capital of the Fund from time to time and has appointed a partnership representative for the Fund, which is treated as a partnership for U.S. federal income tax purposes. Morgan Stanley AIP GP LP serves as the Fund’s investment adviser (the “Investment Adviser”). The Adviser is responsible for providing day-to-day investment management services to the Fund, subject to the supervision of the Fund’s Board of Trustees (the “Board”). The Investment Adviser is an affiliate of Morgan Stanley. The Adviser is registered as an investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the “Advisers Act”), and as a commodity trading adviser and a commodity pool operator with the Commodity Futures Trading Commission and the National Futures Association. The Fund’s term is perpetual unless the Fund is otherwise terminated under the terms of the Trust Deed or unless and until required by law. The Fund is a “Master” fund in a “Master-Feeder” structure whereby the feeder fund invests substantially all of its assets in the Fund. As of December 31, 2023, Alternative Investment Partners Absolute Return Fund STS, an indirect feeder fund to the Fund, represented 59.56% of the Fund’s net assets. The Board has overall responsibility for monitoring and overseeing the Fund’s investment program and its management and operations. None of the members of the Board are “interested persons” (as defined by the 1940 Act) of the Fund or the Investment Adviser. The Fund offers on a continuous basis through Morgan Stanley Distribution, Inc. (the “Distributor”), an affiliate of Morgan Stanley, 1,500,000 shares of beneficial interest (“Shares”). The initial closing date (“Initial Closing Date”) for public offering of Shares was July 1, 2006. Shares were offered until the Initial Closing Date at an initial offering price of $1,000 per Share, plus any applicable sales load, and have been continuously offered thereafter for purchase as of the first day of each calendar month at the

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 15 1. Organization (continued) Fund’s then current net asset value per Share, plus any applicable sales load. The Distributor may enter into selected dealer agreements with various brokers and dealers (“Selling Agents”), some of which are affiliates of the Fund, that have agreed to participate in the distribution of the Fund’s Shares. Shares may also be purchased through any registered investment adviser (a “RIA”) that has entered into an arrangement with the Distributor for such RIA to recommend Shares to its clients in conjunction with a “wrap” fee, asset allocation or other management asset program by such RIA. Shares are sold only to investors (“Shareholders”) that represent that they are “accredited investors” within the meaning of Rule 501(a) of Regulation D promulgated under the U.S. Securities Act of 1933, as amended. The minimum initial investment in the Fund by any Shareholder is $50,000. The minimum additional investment in the Fund by any Shareholder is $25,000. The minimum initial and additional investments may be reduced by the Fund with respect to certain Shareholders. Shareholders may only purchase their Shares through the Distributor, a Selling Agent or a RIA. The Fund may from time to time offer to repurchase Shares (or portions of them) at net asset value pursuant to written tenders by Shareholders, and each such repurchase offer will generally apply to up to 15% of the net assets of the Fund. Repurchases are made at such times, in such amounts and on such terms as may be determined by the Board, in its sole discretion. In determining whether the Fund should offer to repurchase Shares (or portions of them) from Shareholders, the Board will consider the recommendations of the Adviser as to the timing of such an offer, as well as a variety of operational, business and economic factors. The Adviser expects that, generally, it will recommend to the Board that the Fund offers to repurchase Shares (or portions of them) from Shareholders quarterly, on each March 31, June 30, September 30 and December 31. In general, the Fund will initially pay at least 90% of the estimated value of the repurchased Shares to Shareholders as of the later of: (1) a period of within 30 days after the value of the Shares to be repurchased is determined, or (2) if the Fund has requested withdrawals of its capital from any Investment Funds in order to fund the repurchase of Shares, within ten business days after the Fund has received at least 90% of the aggregate amount withdrawn by the Fund from such Investment Funds. The remaining amount (the “Holdback Amount”) will be paid promptly after completion of the annual audit of the Fund and preparation of the Fund’s audited financial statements. As of December 31, 2023, the Holdback Amount was $365,678, which included any Holdback Amount for repurchases as of December 31, 2023 and was included in payable for share repurchases in the Statement of Assets and Liabilities. 2. Significant Accounting Policies The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“US GAAP”). Such policies are consistently followed by the Fund in preparation of its financial statements. Management has determined that the Fund is an investment company in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services – Investment Companies”, for the purpose of financial reporting. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases or decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund’s financial statements are stated in United States dollars.

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 16 2. Significant Accounting Policies (continued) Portfolio Valuation The net asset value of the Fund is determined as of the close of business at the end of any fiscal period, generally monthly, in accordance with the valuation principles set forth below or as may be determined from time to time pursuant to policies established by the Board. As of December 31, 2023, all of the Fund’s portfolio was comprised of investments in Investment Funds. Pursuant to Rule 2a-5 of the Act, the Board had designated the Adviser as its valuation designee. The valuation designee had responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Board. The Board has approved procedures pursuant to which the Fund values its investments in Investment Funds at fair value, which ordinarily will be the amount equal to the Fund’s pro rata interest in the net assets of each such Investment Fund (“NAV”), as such value is supplied by, or on behalf of, the Investment Fund’s investment manager from time to time, usually monthly. Values received from, or on behalf of, the Investment Funds’ respective investment managers are typically estimates only, subject to subsequent revision by such investment managers. Such values are generally net of management fees and performance incentive fees or allocations payable to the Investment Funds’ managers or general partners pursuant to the Investment Funds’ operating agreements. The Investment Funds value their underlying investments in accordance with policies established by each Investment Fund, as described in each of their financial statements or offering memoranda. The Fund’s investments in Investment Funds are subject to the terms and conditions of the respective operating agreements and offering memoranda, as appropriate. Some of the Investment Funds may hold a portion of their assets in “side pockets”, which are sub-funds within the Investment Funds that have restricted liquidity, potentially extending over a much longer period than the typical liquidity an investment in the Investment Funds may provide. Should the Fund seek to liquidate its investment in an Investment Fund that maintains these side pockets, the Fund might not be able to fully liquidate its investment without delay, which could be considerable. In such cases, until the Fund is permitted to fully liquidate its interest in the Investment Fund, the fair value of its investment could fluctuate based on adjustments to the value of the side pocket as reported by the Investment Fund’s investment manager. At December 31, 2023, $1,398,003 of the Fund’s capital was invested in side pockets maintained by the Investment Funds. The Adviser has designed ongoing due diligence processes with respect to Investment Funds and their investment managers, which assist the Adviser in assessing the quality of information provided by, or on behalf of, each Investment Fund and in determining whether such information continues to be reliable or whether further investigation is necessary. Such investigation, as applicable, may or may not require the Adviser to forego its normal reliance on the value supplied by, or on behalf of, such Investment Fund and to determine independently the fair value of the Fund’s interest in such Investment Fund, consistent with the Fund’s fair valuation procedures.

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 17 2. Significant Accounting Policies (continued) Portfolio Valuation (continued) Where no value is readily available from an Investment Fund or where a value supplied by an Investment Fund is deemed by the Adviser not to be indicative of its fair value, the Adviser will determine the fair value of the Investment Fund. In order to determine the fair value of these Investment Funds, the Adviser has established the Fund of Hedge Funds Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for determining and implementing the Fund’s valuation policies and procedures, which have been adopted by the Board and are subject to Board supervision. The Valuation Committee consists of voting members from Morgan Stanley’s accounting, financial reporting and risk management groups, and non-voting members from portfolio management, legal and compliance groups. A member of the portfolio management team may attend each Valuation Committee meeting to provide knowledge, insight, and recommendations on valuation issues. The portfolio management team will recommend to the Valuation Committee a fair value for an investment using valuation techniques such as a market approach or income approach. In applying these valuation techniques, the portfolio management team uses their knowledge of the Investment Fund, industry expertise, information obtained through communication with the Investment Fund’s investment manager, and available relevant information as it considers material. After consideration of the portfolio management team’s recommendation, the Valuation Committee will determine, in good faith, the fair value of the Investment Fund. The Valuation Committee shall meet at least annually to analyze changes in fair value measurements. Because of the inherent uncertainty of valuation, the fair values of the Fund’s investments may differ significantly from the values that would have been used had a ready market for these Investment Funds held by the Fund been available. Cash and Cash Equivalents Cash and cash equivalents consist of cash held on deposit and short term highly liquid investments that are readily convertible to known amounts of cash and have maturities of three months or less. Investments in money markets are valued at fair value using the net asset value as the price and are categorized as Level 1 securities as described in Note 4. As of December 31, 2023, cash equivalents consisted of investments in money market funds valued at $857,673. The Fund maintains cash held on deposit at one or more financial institutions. The Fund is subject to credit risk should a financial institution be unable to fulfill its obligations. Income Recognition and Expenses The Fund recognizes income and expenses on an accrual basis. Income, expenses, and realized and unrealized gains and losses are recorded monthly. The changes in Investment Funds’ fair values are included in net change in unrealized appreciation/depreciation on investments in Investment Funds in the Statement of Operations. Realized gain (loss) from investments in Investment Funds is calculated using specific identification.

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 18 2. Significant Accounting Policies (continued) Income and Withholding Taxes No provision for federal, state, or local income taxes is required in the financial statements. In accordance with the U.S. Internal Revenue Code of 1986, as amended, each of the Shareholders and Special Shareholder is to include its respective share of the Fund’s realized profits or losses in its individual tax returns. The Fund files tax returns with the U.S. Internal Revenue Service and various states. The Fund expects to be treated as a partnership for U.S. federal income tax purposes. The Fund is required to withhold up to 30% U.S. tax from U.S. source dividends and 21% (37% for non-corporate, non-U.S. investors) U.S. tax from effectively connected income allocable to its non-U.S. investors and remit those amounts to the U.S. Internal Revenue Service on behalf of the non-U.S. investors. The rate of withholding is generally the rate at which the particular non-U.S. Shareholder is subject to U.S. federal income tax. The non-U.S. Shareholders are obligated to indemnify the Fund for any taxes that the Fund is required to withhold as well as any interest or penalties. Withholding taxes result in a repurchase of Shares from the Fund for any non-U.S. Shareholders who incur the withholding. For the year ended December 31, 2023, the Fund recorded an estimated tax withholding amount of $873,644 which is included in repurchases in the Statements of Changes in Net Assets. The Special Shareholder made no contributions to the capital of the Fund for U.S. Federal income tax purposes during this period. The Fund has concluded there are no significant uncertain tax positions that would require recognition in the financial statements as of December 31, 2023. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in other expenses in the Statement of Operations. Generally, open tax years under potential examination vary by jurisdiction, but at least each of the tax years in the four-year period ended December 31, 2023, remains subject to examination by major taxing authorities. 3. Financial Instruments with Off-Balance Sheet Risk In the normal course of business, the Investment Funds in which the Fund invests may trade various financial instruments and enter into various investment activities with off-balance sheet risk. These include, but are not limited to, short selling activities, written option contracts, and swaps. The Fund’s risk of loss in each Investment Fund is limited to the value of the Fund’s interest in each Investment Fund as reported by the Fund. 4. Fair Value of Financial Instruments The fair value of the Fund’s assets and liabilities that qualify as financial instruments approximates the carrying amounts presented in the Statement of Assets and Liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund uses a three-tier hierarchy to distinguish between (a) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 19 4. Fair Value of Financial Instruments (continued) (b) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the fair value of the Fund’s investments. The inputs are summarized in the three broad levels listed below: • Level 1 – quoted prices in active markets for identical investments • Level 2 – other significant observable inputs (including quoted prices for similar investments), or short-term investments that are valued at amortized cost • Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The units of account that are valued by the Fund are its interests in the Investment Funds or other financial instruments and not the underlying holdings of such Investment Funds or other financial instruments. Thus, the inputs used by the Fund to value its investments in each of the Investment Funds or other financial instruments may differ from the inputs used to value the underlying holdings of such Investment Funds or other financial instruments. The following is a summary of the inputs used for investment tranches as of December 31, 2023 in valuing the Fund’s investments carried at fair value: Level 1 Level 2 Level 3 Investments measured Total Investments in Investment Funds at NAV* Commodity Trading Advisors - Managed Futures $ - $ - $ - $ 34,927,680 $ 34,927,680 Distressed - - - 12,745,079 12,745,079 Equity Long/Short - High Hedge - - - 59,736,058 59,736,058 Equity Long/Short - Opportunistic - - - 15,375,528 15,375,528 Event Driven Credit - - - 25,305,948 25,305,948 Fixed Income Arbitrage - - - 16,275,661 16,275,661 Macro - - - 40,011,325 40,011,325 Multi-Strategy - - 265,556 128,302 393,858 Other Directional - - - 8,220,575 8,220,575 Private Placement - - 3,837,937 - 3,837,937 Statistical Arbitrage - - - 111,958,427 111,958,427 Total Investments in Investment Funds $ - $ - $ 4,103,493 $ 324,684,583 $ 328,788,076 *All investments that are measured at fair value using the NAV (or its equivalent) as the practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this column are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Financial Condition.

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 20 4. Fair Value of Financial Instruments (continued) The following is a reconciliation of Level 3 investment tranches for the year ended December 31, 2023: Balance, Transfers Transfers Sales/ Net realized Net change in unrealized Balance, Investment Funds January 1, 2023 into Level 3 out of Level 3 Purchases Distributions gain (loss) appreciation/depreciation December 31, 2023 Multi-Strategy $ 326,310 $ - $ - $ - $ (98,955) $ 50,692 $ (12,491) $ 265,556 Private Placement 2,985,286 - - - (451,141) 375,907 927,885 3,837,937 Total Investment Funds $ 3,311,596 $ - $ - $ - $ (550,096) $ 426,599 $ 915,394 $ 4,103,493 The following is a summary of quantitative information about significant unobservable valuation inputs for Level 3 investments held as of December 31, 2023. Fair Value at 12/31/2023 Valuation technique(s) Unobservable input Range (weighted average) Investment Funds Multi-Strategy $ 265,556 Market approach Discount for lack of marketability 6% Private Placement 3,837,937 Market approach Discount for lack of marketability 17% Total Investment Funds $ 4,103,493 5. Investments in Investment Funds The following table summarizes the fair value and liquidity terms of the Investment Funds as of December 31, 2023, aggregated by investment strategy: Redemption Redemption Frequency Notice Period Investment Funds (if applicable) (if applicable) Commodity Trading Advisors - Managed Futures (a) $ 34,927,680 Monthly 30-65 days Distressed (b) 12,745,079 Not Applicable Not Applicable Equity Long/Short - High Hedge (c) 59,736,058 Monthly to Quarterly 30-90 days Equity Long/Short - Opportunistic (d) 15,375,528 Annually 45 days Event Driven Credit (e) 25,305,948 Quarterly 65-90 days Fixed Income Arbitrage (f) 16,275,661 Monthly to Quarterly 45-90 days Macro (g) 40,011,325 Quarterly 75-90 days Multi-Strategy (h) 393,858 Not Applicable Not Applicable Other Directional (i) 8,220,575 Not Applicable Not Applicable Private Placement (j) 3,837,937 Not Applicable Not Applicable Statistical Arbitrage (k) 111,958,427 Monthly to Quarterly 30-90 days Total Investment Funds $ 328,788,076 Fair Value

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 21 5. Investments in Investment Funds (continued) (a) Investment Funds in this strategy invest in a variety of futures contracts, including currencies, interest rates, stocks, stock market indexes, derivatives, and commodities. These Investment Funds build quantitative models to price futures and then take long and short positions in the futures. (b) Investment Funds in this strategy invest in, and may sell short, the securities of companies where the security’s price have been, or is expected to be, affected by a distressed situation such as a bankruptcy or corporate restructuring. Investment Fund tranches representing 4.37% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund tranches is uncertain. (c) Investment Funds in this strategy seek to profit by exploiting pricing inefficiencies between related equity securities, neutralizing exposure to market risk by combining long and short positions. (d) Investment Funds in this strategy consist of a core holding of long equities hedged at all times with short sales of stocks or stock index options. Some of the Investment Funds’ respective investment managers maintain a substantial portion of assets within a hedged structure and commonly employ leverage. Investment Fund tranches representing 0.44% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund tranches is uncertain. (e) Investment Funds in this strategy invest in debt securities created by significant transactional events, such as spin-offs, mergers and acquisitions, bankruptcy reorganizations, and recapitalizations. (f) The Investment Funds in this strategy seek to profit by exploiting pricing differences between related fixed income securities and their derivatives, neutralizing exposure to market risk by combining long and short positions. (g) Investment Funds in this strategy invest by making leveraged bets on anticipated price movements of stock markets, interest rates, foreign exchange and physical commodities (h) Investment Funds in this strategy seek to exploit pricing differentials between various issues of mortgage-related bonds. Investment Fund tranches representing 0.13% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund tranches is uncertain. (i) Investment Funds in this strategy invest in a broad group of directional strategies, often with little hedging. Investment Fund tranches representing 2.82% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund tranches is uncertain. (j) The Investment Fund in this strategy invest primarily in private (non-public) securities with limited liquidity. Investment Fund tranches representing 1.32% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund tranches is uncertain. (k) Investment Funds in this strategy profit from temporary pricing discrepancies between related securities. This irregularity offers an opportunity to go long the cheaper security and to short the more expensive one in an attempt to profit as the prices of the two revert to their norm, or mean. As of December 31, 2023, 9.08% of the Fund’s net assets were invested in Investment Funds with restricted liquidity or with the next available redemption date extending beyond one year from December 31, 2023. For the year ended December 31, 2023, aggregate purchases and proceeds from sales of investments in Investment Funds were $66,931,932 and $112,326,779 respectively. The cost of investments for federal income tax purposes is adjusted for items of taxable income or loss allocated to the Fund from the Investment Funds. The allocated taxable income or loss is reported to the Fund by the Investment Funds on Schedules K-1. Such tax adjustments for the year ended December 31, 2023 will be made once the Fund has received all 2019 Schedules K-1 from the Investment Funds.

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 22 6. Investment Receivables and Prepaid Investments As of December 31, 2023, $23,871,596 was due to the Fund from Investment Funds. The receivable amount represents the fair value of certain Investment Fund tranches, net of management fees and incentive fees/allocations, that were redeemed by the Fund at year-end or holdback amounts that will be received from certain Investment Funds. Substantially all of the receivable balance was collected subsequent to the balance sheet date. Prepaid investments in Investment Funds represent amounts transferred to Investment Funds prior to year-end relating to investments to be made effective January 1, 2024, pursuant to each Investment Fund’s operating agreements. As of December 31, 2023, the Fund had no prepaid investments in Investment Funds. 7. Management Fee, Related Party Transactions and Other The Fund bears all expenses related to its investment program, including, but not limited to, expenses borne indirectly through the Fund’s investments in the underlying Investment Funds. In consideration of the advisory and other services provided by the Investment Adviser to the Fund, the Fund pays the Investment Adviser a monthly management fee of 0.083% (1.00% on an annualized basis) of the Fund’s month end net asset value. The management fee is an expense paid out of the Fund’s assets and is computed based on the value of the net assets of the Fund as of the close of business on the last business day of each month, before adjustments for any repurchases effective on that day. The management fee is in addition to the asset-based fees and incentive fees or allocations charged by the underlying Investment Funds and indirectly borne by Shareholders in the Fund. For the year ended December 31, 2023, the Fund incurred management fees of $2,941,798, of which $738,567 was payable to the Investment Adviser at December 31, 2023. The Distributor and Selling Agents may charge Shareholders a sales load of up to 3% of the Shareholder’s purchase. The Distributor or a Selling Agent may, in its discretion, waive the sales load for certain investors. In addition, purchasers of Shares in conjunction with certain “wrap” fee, asset allocation or other managed asset programs sponsored by a RIA, including an affiliate of the Adviser, or Morgan Stanley and its affiliates (including the Adviser) and the directors, partners, principals, officers and employees of any such RIA or any of the Adviser and its affiliates may not be charged a sales load. The Fund pays the Distributor, and the Distributor pays each financial institution, broker-dealer and other industry professional (collectively, “Service Agents”) that enters into a Distribution and Shareholder Servicing Agreement with the Distributor, a monthly shareholder servicing fee of up to 0.0625% (0.75% on an annualized basis) of the net asset value of the outstanding Shares attributable to the clients of the Service Agent who are invested in the Fund through the Service Agent. In exchange for this fee, the Service Agent provides distribution, marketing and/or sales support services, including making the Fund available as an investment option to the Service Agent’s clients, offering the Fund as an option on any distribution “platform” the Service Agent administers, making information about the Fund available to clients, including the Fund’s Prospectus, statement of additional information and sales literature, engaging in education or marketing activities about the Fund and its characteristics and retaining or utilizing the services of sales professionals, consultants and other personnel to assist in marketing shares of the Fund

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 23 7. Management Fee, Related Party Transactions and Other (continued) to clients. For the year ended December 31, 2023, the Fund incurred shareholder servicing fees of $2,187,137, of which $547,762 was payable to the Distributor at December 31, 2023. State Street Bank and Trust Company (“State Street”) provides accounting and administrative services to the Fund. Under an administrative services agreement, State Street is paid an administrative fee, computed and payable monthly at an annual rate ranging from 0.045% to 0.075%, based on the aggregate monthly net assets of certain Morgan Stanley products, including the Fund, for which State Street serves as the administrator. State Street also serves as the Fund’s custodian. Under a custody services agreement, State Street is paid a custody fee monthly at an annual rate of 0.020%, based on (i) the aggregate monthly net assets of certain Morgan Stanley products, including the Fund, for which State Street serves as the custodian, and (ii) investment purchases and sales activity related to the Fund. The Fund is charged directly for certain reasonable out-of-pocket expenses related to the accounting, administrative and custodial services provided by State Street to the Fund. The Fund has a deferred compensation plan (the “DC Plan”) that allows each member of the Board that is not an affiliate of Morgan Stanley to defer payment of all, or a portion, of the fees he or she receives for serving on the Board throughout the year. Each eligible member of the Board generally may elect to have the deferred amounts invested in the DC Plan in order to earn a return equal to the total return on one or more of the Morgan Stanley products that are offered as investment options under the DC Plan. Investments in the DC Plan, unrealized appreciation/depreciation on such investments and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the net asset value of the Fund. At December 31, 2023, the Fund’s proportionate share of assets attributable to the DC Plan was $15,842, which is included in the Statement of Assets and Liabilities under other assets and the deferred compensation obligation under accrued expenses and other liabilities. UMB Fund Services, Inc. serves as the Funds transfer agent. Transfer agent fees are payable monthly based on an annual Fund base fee, annual per Shareholder account charges, and out-of-pocket expenses incurred by the transfer agent on the Fund’s behalf. 8. Borrowings Effective October 22, 2018, the Fund entered into a committed credit agreement with Bank of America, N.A. for a revolving line of credit (the “Facility”). The maximum availability under the Facility is the lesser of $85,000,000 commitment amount (“Commitment Amount”) or 30% of the Fund’s adjusted net assets, as defined in the credit agreement, subject to specific asset-based covenants. The Fund will pay a minimum utilization fee when the borrowings are less than 60% of the Commitment Amount. Prior to September 29, 2023, the interest rate on borrowings was the Daily Simple SOFR rate plus 1.40%. Effective September 29, 2023, the interest rate is the Daily Simple SOFR rate plus 1.50%. Under the terms of the Facility, borrowings are repayable no later than September 26, 2025, the termination date of the Facility. At December 31, 2023, there was $55,521,267 outstanding against the Facility. For the year

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 24 8. Borrowings (continued) ended December 31, 2023, the Fund incurred interest expense of $3,892,366 in connection with the Facility. Borrowings are secured by the Fund’s investments in Investment Funds. Detailed below is summary information concerning the borrowings: # of Days Outstanding Average Daily Balance Annualized Weighted Average Rate 365 $60,234,418 6.47% 9. Market Risk The value of an investment in the Fund is based on the values of the Fund’s investments, which change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events adversely interrupt the global economy and financial markets. Securities in the Fund’s portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years, such as terrorist attacks around the world, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund’s investments, and exacerbate pre-existing risks to the Fund. The occurrence, duration and extent of these or other types of adverse economic and market conditions and uncertainty over the long term cannot be reasonably projected or estimated at this time. The ultimate impact of public health emergencies or other adverse economic or market developments and the extent to which the associated conditions impact the Fund and its investments will also depend on other future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund’s investments (and, in turn, the Fund’s investment results) as well as their liquidity may be adversely affected because of these and similar types of factors and developments, which may in turn impact valuation, the Fund’s ability to sell securities and/or its ability to meet redemptions. 10. LIBOR Discontinuance or Unavailability Risk The Fund’s investments, payment obligations and financing terms may be based on floating rates, such as the London Interbank Offered Rates (collectively, “LIBOR”), Euro Interbank Offered Rate, Secured Overnight Financing Rate (“SOFR”) and other similar types of reference rates (each, a “Reference Rate”). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. London Interbank Offered Rate (“LIBOR”) was the basic rate of interest used in lending transactions between banks on the London interbank market and has been widely used as a reference for setting the interest rate on loans globally. As

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 25 10. LIBOR Discontinuance or Unavailability Risk (continued) a result of benchmark reforms, publication of most LIBOR settings has ceased. Various financial industry groups have been planning for the transition from LIBOR and certain regulators and industry groups have taken actions to establish alternative reference rates (e.g., the SOFR, which measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities and is intended to replace U.S. dollar LIBORs with certain adjustments). These developments could negatively impact financial markets in general and present heightened risks, including with respect to the Fund’s investments. As a result of the uncertainty and developments relating to the transition process, performance, price volatility, liquidity and value of the Fund and its assets may be adversely affected. 11. Contractual Obligations The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Alternative Investment Partners Absolute Return Fund Notes to Financial Statements (continued) 26 12. Financial Highlights The following represents per Share data, ratios to average net assets, and other financial highlights information for Shareholders. For the Year For the Year For the Year For the Year For the Year Ended Ended Ended Ended Ended December 31, December 31, December 31, December 31, December 31, 2023 2022 2021 2020 2019 For a Share outstanding throughout the year: Net asset value, beginning of year $ 2,143.29 $ 2,022.78 $ 1,912.34 $ 1,737.31 $ 1,634.99 Net investment income (loss) (a) (72.43) (57.30) (45.28) (42.07) (44.21) Net realized and unrealized gain (loss) from investments 212.44 177.81 155.72 217.10 146.53 Net increase (decrease) resulting from operations 140.01 120.51 110.44 175.03 102.32 Net asset value, end of year $ 2,283.30 $ 2,143.29 $ 2,022.78 $ 1,912.34 $ 1,737.31 Total return (b) 6.53% 5.96% 5.78% 10.07% 6.26% Ratio of total expenses (c) 3.37% 2.79% 2.33% 2.41% 2.70% Ratio of net investment income (loss) (d) (3.29%) (2.77%) (2.32%) (2.40%) (2.61%) Portfolio turnover 19% 25% 11% 23% 33% Senior security, end of year (000s) $ 55,521 $ 66,721 $ 68,896 $ 74,996 $ 77,246 $ 6,255 $ 5,409 $ 5,268 $ 5,300 $ 5,512 Net assets, end of year (000s) $ 291,744 $ 294,172 $ 294,068 $ 322,500 $ 348,561 Asset coverage per $1,000 of senior security principal amount (e) (a) Calculated based on the average shares outstanding methodology. (b) Total return assumes a subscription of a Share in the Fund at the beginning of the year indicated and a repurchase of the Share on the last day of the year, and does not reflect the impact of the sales load, if any, incurred when subscribing to the Fund. (c) Ratio does not reflect the Fund’s proportionate share of the expenses of the Investment Funds. (d) Ratio does not reflect the Fund’s proportionate share of the income and expenses of the Investment Funds. (e) Represents asset coverage per $1,000 of indebtedness calculated by subtracting the Fund’s liabilities and indebtedness not represented by senior securities from the Fund’s total assets, then the result divided by the aggregate amount of the Fund’s senior securities representing indebtedness, and multiplying the result by 1,000. The above ratios and total returns have been calculated for the Shareholders taken as a whole. An individual Shareholder’s return and ratios may vary from these returns and ratios due to the timing of Share transactions and withholding tax allocation, as applicable. 13. Subsequent Events Unless otherwise stated throughout the Notes to Financial Statements, the Fund noted no subsequent events that require disclosure in or adjustment to the financial statements through the date that the financial statements were available to be issued.

Alternative Investment Partners Absolute Return Fund 27 Proxy Voting Policies and Procedures and Proxy Voting Record (Unaudited) If applicable, a copy of (1) the Fund’s policies and procedures with respect to the voting of proxies relating to the Fund’s investments; and (2) how the Fund voted proxies relating to Fund investments during the most recent 12 months period ended December 31, is available without charge, upon request, by calling the Fund at 1-888-322-4675. This information is also available on the Securities and Exchange Commission’s website at http://www.sec.gov. Quarterly Portfolio Schedule (Unaudited) The Fund also files a complete schedule of portfolio holdings with the Securities and Exchange Commission for the Fund’s first and third fiscal quarters on Form N-PORT. The Fund’s Forms N-PORT are available on the Securities and Exchange Commission’s website at http://www.sec.gov. and Morgan Stanley’s public website, www.morganstanley.com/im/shareholderreports. Once filed, the most recent Form N-PORT will be available without charge, upon request, by calling the Fund at 1-888-322-4675.

Alternative Investment Partners Absolute Return Fund An Important Notice Concerning Our U.S. Privacy Policy (Unaudited) 28 WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION? Why? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. What? The types of personal information we collect and share depend on the product or service you have with us. This information can include: ▪ Social Security number and income ▪ investment experience and risk tolerance ▪ checking account number and wire transfer instructions How? All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MSIM chooses to share; and whether you can limit this sharing. Reasons we can share your personal information Does MSIM share? Can you limit this sharing? For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus Yes No For our marketing purposes— to offer our products and services to you Yes No For joint marketing with other financial companies No We don’t share For our affiliates’ everyday business purposes— information about your transactions and experiences Yes No For our affiliates’ everyday business purposes— information about your creditworthiness No We don’t share For our affiliates to market to you No We don’t share For nonaffiliates to market to you No We don’t share Questions? Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com FACTS

29 An Important Notice Concerning Our U.S. Privacy Policy (Unaudited) (continued) Who we are Who is providing this notice? Morgan Stanley Investment Management, Inc. and its affiliated registered investment advisers, registered broker-dealers, and registered and unregistered funds ("MSIM") What we do How does MSIM protect my personal information? To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. How does MSIM collect my personal information? We collect your personal information, for example, when you ▪ open an account or make deposits or withdrawals from your account ▪ buy securities from us or make a wire transfer ▪ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. Why can’t I limit all sharing? Federal law gives you the right to limit only ▪ sharing for affiliates’ everyday business purposes—information about your creditworthiness ▪ affiliates from using your information to market to you ▪ sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. Definitions Affiliates Companies related by common ownership or control. They can be financial and nonfinancial companies. ▪ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. Nonaffiliates Companies not related by common ownership or control. They can be financial and nonfinancial companies. ▪ MSIM does not share with nonaffiliates so they can market to you. Joint marketing A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ▪ MSIM doesn’t jointly market Other important information Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information. California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

30 Information Concerning Trustees and Officers (Unaudited) Name, Address and Birth Year of Independent Trustee Position(s) Held with Registrant Length of Time Served* Principal Occupation(s) During Past 5 Years and Other Relevant Professional Experience Number of Funds in Fund Complex Overseen by Independent Trustee Other Directorships Held by Independent Trustee** Frank L. Bowman c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1944 Trustee Since August 2006 President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996- 2004); served as Chief of Naval Personnel (July 1994- September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l’Orde National du Mérite by the French Government; elected to the National Academy of Engineering (2009). 87 Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of the Board of Trustees of Fairhaven United Methodist Church; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). Kathleen A. Dennis c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1953 Trustee Since August 2006 Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993- 2006); Senior Vice President, Chase Bank (1984-1993). 87 Board Member, University of Albany Foundation (2012- present); Board Member, Mutual Funds Directors Forum (2014- present); Director of various non-profit organizations. Nancy C. Everett c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1955 Trustee Since January 2015 Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011- December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005- May 2010). 88 Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006- 2010).

31 Information Concerning Trustees and Officers (Unaudited) (continued) Name, Address and Birth Year of Independent Trustee Position(s) Held with Registrant Length of Time Served* Principal Occupation(s) During Past 5 Years and Other Relevant Professional Experience Number of Funds in Fund Complex Overseen by Independent Trustee Other Directorships Held by Independent Trustee** Jakki L. Haussler c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1957 Trustee Since January 2015 Chairman, Opus Capital Group (since 1996); formerly, CEO, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005- July 2008). 88 Vertiv Holding Co. (VRT) (August 2022); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008- 2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director, Barnes Group Inc. (Since July 2021); Member of Chase College of Law Centre for Law and Entrepreneurship; Board of Advisors; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee. Dr. Manuel H. Johnson c/o Johnson Smick International, Inc. 220 I Street, NE Suite 200 Washington, D.C. 20002 Birth Year: 1949 Trustee Since July 1991 Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co- Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991- September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. 87 Director of NVR, Inc. (home construction). Joseph J. Kearns c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1942 Trustee Since August 1994 (Retired December 31, 2023) Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee (2006-2022) and Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). 88 Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

32 Information Concerning Trustees and Officers (Unaudited) (continued) Name, Address and Birth Year of Independent Trustee Position(s) Held with Registrant Length of Time Served* Principal Occupation(s) During Past 5 Years and Other Relevant Professional Experience Number of Funds in Fund Complex Overseen by Independent Trustee Other Directorships Held by Independent Trustee** Michael F. Klein c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1958 Trustee Since August 2006 Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). 87 Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). Patricia A. Maleski c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1960 Trustee Since January 2017 Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer—Global Asset Management (2013-2015); President, JPMorgan Funds (2010- 2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). 88 Formerly, Trustee (January 2022 to March 2023), Treasurer (January 2023 to March 2023), and Finance Committee (January 2022 to March 2023). W. Allen Reed c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1947 Chair of the Board and Trustee Chair of the Boards since August 2020 and Trustee since August 2006 Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chairperson of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). 87 Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015).

33 Information Concerning Trustees and Officers (Unaudited) (continued) Name, Address and Birth Year of Independent Trustee Position(s) Held with Registrant Length of Time Served* Principal Occupation(s) During Past 5 Years and Other Relevant Professional Experience Number of Funds in Fund Complex Overseen by Independent Trustee** Other Directorships Held by Independent Trustee*** Frances L. Cashman c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036 Birth Year: 1961 Trustee Trustee Since March 2022 Chief Executive Officer, Asset Management Portfolio, Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicola (2005-2010). 88 Formerly, Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee, Member of Investment Committee and Chair of Marketing Committee, and Member of Investment Committee, Loyola Blakefield (2017-2023); Trustee, MMI Gateway Foundation (2017-2023); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). Eddie A. Grier c/o Perkins Coie LLP Counsel to the Independent Trustees 1155 Avenue of the Americas 22nd Floor New York, NY 10036Birth Year: 1955 Trustee Trustee Since February 2022 Dean, Santa Clara University Leavey School of 78 Business (since July 2021); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010).. 88 Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016- 2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2013- 2019). * This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected. ** The Fund Complex includes (as of December 31, 2023) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the “Adviser”) and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP). *** This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

34 Information Concerning Trustees and Officers (Unaudited) (continued) Position(s) Length of Name, Address and Birth Held with Time Principal Occupation(s) Year of Executive Officer Registrant Served** During Past 5 Years John H. Gernon 522 Fifth Avenue New York, NY 10036 Birth Year: 1963 President and Principal Executive Officer Since September 2013 President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. Deidre A. Downes 1633 Broadway New York, NY 10019 Birth Year: 1977 Chief Compliance Officer Since November 2021 Executive Director of the Adviser (since January 2021) and Chief Compliance officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). Christopher Auffenberg 100 Front Street, Suite 400 West Conshohocken, PA 19428 Birth Year: 1984 Vice President Since May 2022 Chief Operating Officer of the Morgan Stanley Alternative Investment Partners Hedge Fund team and Executive Director of Morgan Stanley Investment Management Inc. Mary E. Mullin 522 Fifth Avenue New York, NY 10036 Birth Year: 1967 Secretary Since June 1999 Managing Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). Michael J. Key 522 Fifth Avenue New York, NY 10036 Birth Year: 1979 Vice President Since June 2017 Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). Francis J. Smith 522 Fifth Avenue New York, NY 10036 Birth Year: 1965` Treasurer and Principal Financial Officer Treasurer since July 2003 and Principal Financial Officer since September 2002 Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). * This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected. In addition, the following individuals who are officers of the Adviser or its affiliates serve as assistant secretaries of the Trust: Princess Kludjeson, Kristina B. Magolis, Francesca Mead and Jill R. Whitelaw. The Fund’s statement of additional information includes further information about the Fund’s Trustees and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (888) 322-4675.

35 Alternative Investment Partners Absolute Return Fund 100 Front Street, Suite 400 West Conshohocken, PA 19428 Trustees W. Allen Reed, Chair of the Board and Trustee Frank L. Bowman Frances L. Cashman Kathleen A. Dennis Nancy C. Everett Eddie A. Grier Jakki L. Haussler Dr. Manuel H. Johnson Joseph J. Kearns Michael F. Klein Patricia A. Maleski Officers John H. Gernon, President and Principal Executive Officer Christopher Auffenberg, Vice President Michael J. Key, Vice President Deidre A. Downes, Chief Compliance Officer Francis J.Smith, Treasurer and Principal Financial Officer Mary E. Mullin, Secretary Investment Adviser Morgan Stanley AIP GP LP 100 Front Street, Suite 400 West Conshohocken, PA 19428 Administrator, Custodian, Fund Accounting Agent and Escrow Agent State Street Bank and Trust Company One Lincoln Street Boston, MA 02111 Transfer Agent UMB Fund Services, Inc. 235 W. Galena Street Milwaukee, WI 53212 Independent Registered Public Accounting Firm Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 Legal Counsel Dechert LLP 1095 Avenue of the Americas New York, NY 10036 Counsel to the Independent Trustees Perkins Coie LLP 1155 Avenue of the Americas New York, New York 10036