NEW YORK — Morgan Stanley Investment Management is finally close to stabilizing, after consolidating its investment and sales operations.
The firm posted $7 billion in net inflows in the first half of 2004, compared with outflows of $7.8 billion in all of 2003. In addition, global assets under management have increased for each of the past five quarters, hitting $500 billion as of May 31, the end of the firm's fiscal second quarter.
And, personnel turnover has been reduced.
But some industry experts wonder when Morgan Stanley will complete its turnaround. They cite, for example, the concern that the firm still has too many duplicate investment strategies.
In a recent joint interview, Mitchell M. Merin, president and chief operating officer of MSIM, and William Ennis, president, global services, said it's been Mr. Ennis' mission to centralize the marketing and sales positions. "We have established a sense of renewal and momentum in the last year. It's showing up in market share gains in a number of distribution channels. We're in the best shape we've been in for a long time, both in the individual and on the institutional side," Mr. Merin said.
He added the firm has taken in a lot of new business and received new allocations from existing clients, although he wouldn't name them.
Institutional assets rose to $210 billion as of May 31, up 30% from $162 billion the previous year, its second-quarter earnings report said. Recent wins include a $297 million Pacific equity mandate from the $20 billion French Pension Reserve Fund, Paris.