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Morgan Stanley Wealth-Management fees rise to their historic maximum



The record stock markets have been good for Morgan Stanley.

The firm's equity management fees climbed to a record in the fourth quarter when the S & P 500 index reached an all-time high. The company exceeded its target cost index for the year and recorded the highest profitability under Executive Director James Gorman, who has set his strategy on acquiring the crisis era of the Smith Barney brokerage from Citigroup Inc. Stocks rose as that the company increased its target of return on capital.

Morgan Stanley has been moving more affluent clients to commission-based accounts that are priced at asset levels rather than activity, which boosts results as markets increase. Income from asset management approached parity with the institutional securities business that at any other point since 2013.

Asset management "has only increased in relevance as it continues to grow," said the CFO Jon Pruzan in an interview. "It's a growing contribution of our profits, which is a good thing given the stability" and the high returns of the business, he said.


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