Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (July 2006)
22 slides from Morgan Stanley's investor presentation, July 2006
Slide 1: Asset Management Overview
Morgan Stanley Investment Management Asset Management Overview July 2006 Page 1
Slide 2: Table of contents
Table of contents Section 1 Strengths of MSIM Today Section 2 MSIM Growth Strategy Page 2
Slide 3: Section 1: Strengths of MSIM Today
Section 1 Strengths of MSIM Today Page 3
Slide 4: MSIM Is a Key Business of Morgan Stanley
STRENGTHS OF MSIM TODAY MSIM Is a Key Business of Morgan Stanley Morgan Stanley Net revenues Profit before taxes Fiscal year 2005=$26,778 million Fiscal year 2005=$7,361 million 19% 8% Asset Asset Management Management 11% 14% 12% 13% 65% 58% Institutional Securities Global Wealth Management Asset M
Slide 5: MSIM Key Strengths
STRENGTHS OF MSIM TODAY MSIM Key Strengths • Strong brand recognition – Morgan Stanley – Van Kampen • Global footprint • Scale • Breadth of products • Multiple channels of distribution • Community of boutiques • Full firm commitment and resources Page 5
Slide 6: MSIM Has a Global Footprint
STRENGTHS OF MSIM TODAY MSIM Has a Global Footprint Products and Distribution Amsterdam Stockholm New York Boston London Frankfurt Paris Luxembourg Oakbrook Terrace San Francisco Menlo Park Jersey City Milan Tokyo Houston West Conshohocken Madrid Hong Kong Mumbai Singapore Melbourne MSIM Office Pres
Slide 7: MSIM Has The Scale to Succeed
STRENGTHS OF MSIM TODAY MSIM Has The Scale to Succeed Top 20 money managers Pensions and Investments, June 2006 Ranking Assets ($ billion) • In June 2006, Pensions and 1 Barclays Global 1,513 Investments ranked Morgan 2 State Street Global 1,439 Stanley #11 by worldwide assets 3 Fidelity Investments
Slide 8: MSIM Organization 2006
MSIM GROWTH STRATEGY MSIM Organization 2006 John Mack Firm CEO • Investment expertise is Bob Scully Firm Co-President organized around investment product areas Owen Thomas MSIM President, COO • Distribution is organized around clients Investments U.S. & Americas Distribution Non-Americas • Focused o
Slide 9: MSIM Product and Distribution Balance
STRENGTHS OF MSIM TODAY MSIM Product and Distribution Balance • MSIM offers a broad array of May 31, 2006 Ending AUM/AUS = $440 billion traditional products and is increasing its offering of alternative products Asset Class Distribution • MSIM utilizes multiple 3% 3% 20% 22% 5% channels of distribut
Slide 10: MSIM Offers Clients a Broad Product Array
STRENGTHS OF MSIM TODAY MSIM Offers Clients a Broad Product Array Key Product Type by Investment Group Global Equity Global Fixed Income Alternatives Dennis Shea, CIO J. David Germany, CIO Stuart Bohart, CIO AUM=$241 billion (1) AUM=$166 billion (1) AUM=$20 billion (1) U.S. Equity • Core/Core Plus •
Slide 11: MSIM Utilizes a Multi-Channel Distribution Approach
STRENGTHS OF MSIM TODAY MSIM Utilizes a Multi-Channel Distribution Approach Core Distribution Americas Retail- Americas Retail- Americas Intermediary U.S. Institutional Non-U.S. Channels Morgan Stanley Branded Van Kampen Branded Customer Tiers Morgan Stanley Global • Broker Dealers • Banks • Consult
Slide 12: MSIM Investment Performance
STRENGTHS OF MSIM TODAY • Performance is key to driving growth MSIM Investment Performance • On February 22nd, 2006, Barron’s U.S. Mutual Funds Performance annual ranking placed MSIM – 30th out of 65 fund families for 1- % Long-Term Fund Assets Above Lipper Median year performance 76% 76% – 24th out
Slide 13: Section 2: MSIM Growth Strategy
Section 2 MSIM Growth Strategy Page 13
Slide 14: Growth Strategy
MSIM GROWTH STRATEGY Growth Strategy Our Strategy for Growth Critical Initiatives • Increase value of Morgan Stanley’s Asset • Build alternatives capability Management business • Create new traditional products using existing — PBT growth capabilities and through lift-outs / acquisitions — Multiple
Slide 15: Build a Much Broader Alternatives Capability
MSIM GROWTH STRATEGY Build a Much Broader Alternatives Capability What We Have What We’ve Done What We’re Doing • The Alternative Investments First Quarter 2006 Absolute Return Strategies group is composed of 4 distinct • Internal transfer of Structured • Continue efforts on lift-out / groups: Produ
Slide 16: Enhance Traditional Product Offerings
MSIM GROWTH STRATEGY Enhance Traditional Product Offerings Through both Organic Launches and Bolt-on Acquisitions/Lift-Outs What We Have What We’ve Done What We’re Doing • Many top performing equity First Quarter 2006 Organic launches strategies at or near capacity • Launched / incubated 5 new • Lev
Slide 17: Expand Non-U.S. Footprint
MSIM GROWTH STRATEGY Expand Non-U.S. Footprint Distribution and products What We Have What We’ve Done What We’re Doing • $89 billion, or 20% of MSIM First Quarter 2006 Expand the footprint AUM/AUS is sourced from non- • Increased distribution focus on • Asia U.S.(1) Alternatives – Korea • Signed a g
Slide 18: Invest in Van Kampen - Intermediary and Unit Investment Trusts Growth
MSIM GROWTH STRATEGY Invest in Van Kampen - Intermediary and Unit Investment Trusts Growth What We Have What We’ve Done What We’re Doing • Vibrant $100+ billion fund and Unit First Quarter 2006 • Increase resources for high growth / Investment Trusts complex(1) • Launched Van Kampen margin businesse
Slide 19: Stem Outflows of Morgan Stanley Retail Mutual Funds
MSIM GROWTH STRATEGY Stem Outflows of Morgan Stanley Retail Mutual Funds What We Have What We’ve Done What We’re Doing • Morgan Stanley Advisors funds First Quarter 2006 • Preserve favorable market share (excluding Money Market and • Deployed a new client focused in Morgan Stanley GWMG Closed End) r
Slide 20: Rebuild Institutional Reputation and Business, Particularly in the U.S.
MSIM GROWTH STRATEGY Rebuild Institutional Reputation and Business, Particularly in the U.S. What We Have What We’ve Done What We’re Doing • $187 billion in AUM, 43% of First Quarter 2006 Client MSIM total (1) • Launched / incubated 9 new • Communicate MSIM story to products within the channel clien
Slide 21: Summary: Measuring Our Progress
MSIM GROWTH STRATEGY Summary: Measuring Our Progress First Year Two to Three Years Three Threeto to Five Years Five Years Business Investment Gaining Traction Results • New management team • Positive flows • Leader in the asset • Filled leadership gaps • More complete traditional management business
Slide 22: Measuring Our Performance: Key Success Metrics
MSIM GROWTH STRATEGY Measuring Our Performance: Key Success Metrics FY 2005 Results (1) Aspiration • Net revenues $2.9 billion Double digit growth • Pre-tax margin 35% (incl. Private Equity) 30%~35% 29% (excl. Private Equity) • Assets Under Management $431 billion $600 billion+ • Net Flows ($19) bil