Morgan Stanley's wealth division added $311 billion in net new assets in 2022, down 2 percent from $437 billion in 2021. The firm brought in $52 billion in the fourth quarter, below the roughly $80 billion quarterly average needed to maintain its trillion-dollar target.
Despite the decreases, CEO James Gorman expects the unit to hit its goal of adding $1 trillion in new net new assets every three years.
According to AdvisorHub, Morgan Stanley demonstrated a significant dependence on growth in its wealth division. The firm drew 45 percent of its annual revenue and 47 percent of its pretax profit from wealth management amid a slowdown in capital markets and trading.
According to senior executives at the firm, Morgan Stanley is betting on its ability to convert workplace and self-directed clients to full-service brokerage customers. Additionally, the firm has launched companion E*Trade accounts to 90 percent of workplace customers and is retaining 30 percent of stock plan assets that vest on the platform. The launch of the companion E*Trade accounts resulted in roughly $150 billion in new assets for advisors to manage.
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