For the quarter ended Dec. 31, MSIM saw $13.7 billion in net outflows — $7.1 billion from long-term strategies and $6.6 billion from liquidity and overlay offerings. The firm's active equity strategies suffered the bulk of the quarter's long-term outflows, partly offset by inflows for Parametric's customized equity and fixed-income offerings for retail investors, said Sharon Yeshaya, Morgan Stanley's executive vice president and chief financial officer, on an earnings call.
The combined Parametric brand, which became part of Morgan Stanley with the firm's 2021 acquisition of Eaton Vance, Parametric's parent company, saw net inflows of $5 billion for the quarter, inclusive of its overlay and retail offerings, Yeshaya said.
Ted Pick, who succeeded James Gorman as Morgan Stanley's CEO at the start of the year following 14 years at the helm for Gorman, said while acquisitions such as Eaton Vance have been a key to lifting Morgan Stanley's wealth and asset management businesses to roughly 60% of profits and revenues last year from closer to 50% for much of the previous decade, "for the next period the view that I would have is we really work to grow the organization and do so organically and efficiently."
Things will come over the transom and Morgan Stanley's team will look at them, but "we can execute our business with the growth plans in front of us and it feels organic," he said.
MSIM's net revenues came to $1.5 billion for the quarter and $5.4 billion for the year, both little changed from a year earlier.
