Morgan Stanley’s Wealth Management Business Achieves Record Inflows
Morgan Stanley’s inflows of net new assets surged again in the first quarter as revenue for its wealth management business climbed to a record high. The firm reported that its net new assets were up 26% year over year to just over $118 billion in the first three months of 2026. This impressive growth followed a previous quarter in which the inflows were up a whopping 116% year over year to reach $122.3 billion.
Net new assets are often seen as a key gauge of success since they measure assets from new or existing clients rather than market gains. In the first quarter, $54 billion of Morgan Stanley’s new assets went into fee-generating accounts, which are valued for their ability to generate steady streams of income.
Morgan Stanley CEO Ted Pick emphasized the firm’s strong client-acquisition funnel as a driving force behind the industry-leading growth. He highlighted the importance of attracting new clients and nurturing existing relationships to sustain this momentum.
Record Revenue and Assets in E-Trade and Morgan Stanley at Work
In a quarter that saw net revenue for the firm’s wealth management business rise by 16% year over year to a record high of $8.52 billion, Morgan Stanley’s strong inflows were complemented by significant growth in client assets. The wealth division’s client assets reached nearly $7.35 trillion, with $5.8 trillion in accounts managed by financial advisors, $1.56 trillion in self-directed accounts in the E-Trade division, and $475 billion in the Morgan Stanley at Work channel.
Morgan Stanley executives have previously highlighted the importance of Morgan Stanley at Work in attracting new assets. The platform assists companies in managing stock-compensation plans and workplace benefits, ultimately leading many clients to establish full-time relationships with financial advisors. Since 2020, the firm has generated over $400 billion in new advisor-led assets from relationships originating from workplace or E-Trade channels.
Progress on the $10 Trillion Goal, Holding Steady on a 30% Profit Margin
Combining its wealth management unit business with its investment management business, Morgan Stanley’s total client assets surpassed $9.7 trillion by the end of the first quarter, marking progress towards the $10 trillion asset goal set by former CEO James Gorman. The wealth business’s noninterest expenses rose by 11% to $5.9 billion, with compensation and benefits accounting for the bulk of this amount at $4.65 billion.
Profit before taxes for the wealth business increased by 33% year over year to nearly $2.6 billion, with the division maintaining a pretax margin of 30%, in alignment with strategic goals. CEO Ted Pick affirmed the firm’s commitment to maintaining this margin while continuing to invest in technology and innovation to enhance operational efficiency.
Like many leading wealth managers, Morgan Stanley has prioritized investments in artificial intelligence and similar technologies to drive growth and improve client service. Pick emphasized the importance of ongoing investment to support clients and advisors while striving to maintain a competitive edge in the industry.
For more information, please visit here.
