Morgan Stanley Global Wealth Management Posts 3Q Profit,Adds
Assets
By Annie Gasparro and Brett Philbin, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- A rising stock market helped Morgan Stanley (MS) Global
Wealth Management, or GWM, boost its total client assets and post a profit in
its first full quarter that includes Smith Barney.
However, the joint venture lost 284 advisers and suffered $8.8 billion in
domestic outflows in the quarter. This is the second straight quarter Morgan
Stanley GWM suffered outflows, losing $2 billion in the second quarter.
The wealth manager, which closed the tie-up with Citigroup Inc.'s (C) retail
brokerage on May 31, said its client assets rose to $1.5 trillion, up from $1.4
trillion at the end of the second quarter. Pre-merger, Morgan Stanley had $647
billion in client assets, a year ago.
Morgan Stanley GWM posted a $280 million profit, compared with a $71 million
loss in the second quarter because of $245 million in integration costs.
The joint venture reported a total brokerage force of 18,160, down from 18,444
at the end of the second quarter. The firm's top competitor Bank of America
Corp.'s (BAC) Merrill Lynch boasts 14,979 brokers.
Annualized production for advisers at Morgan Stanley Smith Barney fell to an
average of $662,000 per broker, down from $671,000 at the end of the second
quarter. As a separate shop, Morgan Stanley averaged $750,000 per adviser, a
year ago.
Morgan Stanley GWM's average client assets per adviser were also helped by
market appreciation, rising to $84 million per adviser, up from $77 million in
the second quarter.
The firm added more assets in the $10 million or more client segment and other
client groups, while reporting lower client assets in the under $100,000
segment. The gains there highlight Morgan Stanley's interest in attracting
wealthier clients and higher-producing advisers.
Late Tuesday, Morgan Stanley announced its 2010 compensation plan for
advisers, raising its payouts for higher-producers.
-By Annie Gasparro and Brett Philbin, Dow Jones Newswires; 212-416-2244;
annie.gasparro@dowjones.com
(END) Dow Jones Newswires
10-21-091130ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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