Morgan Stanley Shoots for $10T in Assets

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Qualified investors “get access through two specific passive funds,” he added.

“The uptake and the interest level has been strong, and we would expect people to continue to be interested in this space,” according to Pruzan. 

Looking ahead, as the firm sees “more or stronger interest, we will continue to try to work with the regulators and others to provide services that we think are appropriate,” the CFO said.

Asset Levels

With the E-Trade and Eaton Vance deals completed, the bank’s wealth and investment management units now have combined assets of $5.7 trillion. “We are more convinced than ever that both deals help position Morgan Stanley for growth in the years ahead,” Gorman explained.

“When we started the Wealth Management journey 12 years ago, we had $500 billion under management, now we have $4 trillion, and so we’re heading to $10 trillion,” he said. 

“We’ve got all these growth verticals, and I just couldn’t be more excited about it,” the CEO added, after describing the importance of the recent acquisitions of Eaton Vance (which includes Calvert Investments and Parametric), E-Trade and Solium Capital.

Describing how Morgan Stanley plans to grow, Pruzan said the firm is “being very deliberate” investing in platforms, its service model, “gathering data and running pilots to make sure that we understand what we need so we can service our clients better.”

These pilot efforts for financial advisors, for instance, include lead generation based on data analytics and scoring models. “We’re making the investments in the engine that will help us match the FA to the client based on specific needs,” the CFO said. 

And Pruzan remains upbeat on the firm’s net advisor recruiting and retention levels. Over the past few quarters, he said, “we’ve been very active [in recruiting]. We’ve become a destination of choice.”

Recruiting advisors are “talking to their previous colleagues, and therefore, it’s sort of accelerating. So we’ve seen really nice net recruiting,” the CFO said. “We’re bringing in bigger teams, better teams and attrition has dramatically slowed down.”