Morgan Stanley's wealth management division, valued at $6 trillion, focuses on reinvestment to enhance client services, including trading systems, artificial intelligence (AI), and private market access. Morgan Stanley's Head of Wealth Management, Jed Finn, told FinancialPlanning that the strategy aims to increase client retention and attract new assets, fueling growth without sacrificing operational efficiency. Finn explains, "Our margin is an output of our growth strategy, centered on serving clients more effectively than anyone else."

Morgan Stanley's wealth unit accounts for nearly 50 percent of the firm's revenue, starkly contrasting to competitors where wealth management contributes a smaller share. This focus enables the firm to prioritize differentiated offerings, including a robust suite of services for clients ranging from self-directed investors using E-Trade to high-net-worth families leveraging bespoke solutions.

Finn also highlighted to FinancialPlanning the firm's innovations in private market access as a key growth driver. With demand for private assets expected to double in the next five years, Morgan Stanley will be developing mechanisms to provide clients with opportunities typically unavailable in public markets.

While other firms compete for advisors with lucrative recruiting packages, Finn claims that Morgan Stanley focuses on selective recruitment and developing its existing talent.

Under Finn's leadership, Morgan Stanley is working toward its goal of managing $10 trillion in assets across its wealth and investment management divisions. With $7.6 trillion already under management as of September 2024, the firm is well on its way.

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