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Morgan Stanley’s Innovative Wealth Management Offerings

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Wealth management

Morgan Stanley (MS) provides wealth management services to clients in 622 locations across the globe through 16,076 global representatives. The company currently manages more than $2 trillion in client assets. Its Wealth Management division generated $14.9 billion in revenues, which made up 43.2% of the company’s total revenues in 2014, compared to 40.1% in 2010.

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Clients

Morgan Stanley’s Wealth Management division advises clients that include:

  • individual investors
  • mid-size corporations
  • high net-worth institutions (with an emphasis on ultra-high-net-worth and affluent investors)

The company provides its wealth management services through branches across the US and globally, and its products are designed to incorporate individual investment objectives with risk tolerance and the liquidity needs of its clients.

Products and services

Major financial solutions in wealth management include products and services from Morgan Stanley and third-party providers, such as other insurance companies, financial institutions, and mutual fund companies. Its services include brokerage and investment advice for the following:

  • equities, options, and futures
  • precious metals and foreign currencies
  • fixed-income securities and structured products
  • alternative investments, mutual funds, and unit investment trusts
  • managed futures, separately managed accounts, and mutual fund asset allocation programs

The Wealth Management division does trading and investments on behalf of clients, offering financial and wealth planning services, education, savings programs, annuity, and other insurance products.

Its services are also tied to Morgan Stanley’s private bank, which offers:

  • cash management services
  • deposits, debit cards, and electronic bill payments
  • lending products

Morgan Stanley charges fees for these services based on transactions as well as on asset-based fee pricing.

In 2Q15, Morgan Stanley’s total assets under management stood at $813 billion. Here’s how its peers’ asset management levels compared during the same period:

  • The Carlyle Group (CG) came in at $193 billion.
  • KKR & Company (KKR) came in at $98 billion.
  • BlackRock (BLK) came in at $4.72 trillion.
  • Apollo Global Management (APO) came in at $163 billion.

Together, these companies make up ~1.4% of the Financial Select Sector SPDR Fund (XLF).

For an in-depth look at Morgan Stanley’s investment management offerings, read the next part of this series.

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