Morgan Stanley (NYSE:MS) Q4 2019 Earnings Conference Call - Final Transcript

Jan 16, 2020 • 08:30 am ET


Morgan Stanley (NYSE:MS) Q4 2019 Earnings Conference Call - Final Transcript


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James P. Gorman

in the US banks and our Modern Wealth Platform. Of particular note, on nearly 100% of business days, we have revenues greater than or equal to $60 million, nearly three times that -- which was five years ago. We also invested in our Investment Management platform. We put together a new growth-oriented leadership team and focused on clients, solutions and new products. We highlight the growth in long-term net flows, which reflect strong long-term performance.

With combined revenues of approximately $21 billion, our Wealth and Investment Management businesses are among the largest platforms in the world, and now we have an untapped opportunity to further scale our Wealth Management channel through our workplace offering. Meeting these ambitions for future growth would not be possible without a strong culture and a cohesive team.

On Slide 6, we describe our culture and the tenure of our leadership team. We have an eight-year track record of stating and meeting various public goals. We continue to invest meaningfully in our culture and diversity efforts to ensure we remain an employer of choice to add top talent. And further, Morgan Stanley has been at the forefront of sustainable finance. We founded our global sustainable finance group over a decade ago with the mission to accelerate the adoption of sustainable investing across capital markets.

I want to spend most of my time providing a bit more detail about the future opportunities we're excited about and that we see across our franchise. Across our segments, we have platforms with scale benefits and we are positioned for growth.

Let's start with Institutional Securities on Slide 7. Our Institutional footprint and franchise is extremely strong. In the face of a declining wallet, we have gained share over the last five years across our Institutional businesses. And we have reason to believe these gains are sustainable. Our business has benefited from the stability of the leadership and commitment to a global client footprint. We expect to continue to hold and gain share across the division.

On Slide 8, we take a deeper look at Wealth Management. 2020 marks a new chapter in our Wealth Management strategy. The significant investments we're making in the digital space, the acquisition of Solium position us to efficiently service the mass affluent population and capture new clients and assets through the workplace. Moreover, we can leverage the corporate relationships we have built through our Institutional offering as we look to add new corporate clients.

We've completed the Morgan Stanley at Work offering to span beyond just Shareworks by Morgan Stanley, our stock plan administration platform. We're enhancing and investing in our financial wellness and retirement offerings. This more fulsome suite of product allows us to deliver services to an even larger base of employees, and this will help ensure that our touch points are not limited to stock plan participants. As illustrated on this slide, we're continuing to win new mandates. The combination of the state-of-the-art Shareworks platform and the Morgan Stanley wealth management capabilities