Morgan Stanley Sees Net New Assets More Than Double in Q4
Morgan Stanley reported a significant increase in net new asset inflows in the fourth quarter, with total wealth and investment assets surpassing $9 trillion for the first time. The firm saw a 116% year-over-year rise in net new asset inflows, totaling $122.3 billion in the last three months of 2025. This surge in assets propelled Morgan Stanley’s total holdings in its wealth and investment management divisions to nearly $9.3 trillion, up from $8.9 trillion in the previous quarter.
Assets in Different Divisions
Of the nearly $9.3 trillion in assets, approximately 80% ($7.3 trillion) was held in Morgan Stanley’s wealth management division. The firm’s assets managed by advisors increased by 20% year over year, reaching just over $5.7 trillion. Half of these assets were in fee-generating accounts, known for their ability to provide steady streams of income.
Assets held in Morgan Stanley’s E-Trade online brokerage and self-directed accounts rose by 16% to $1.67 trillion. The Morgan Stanley at Work division, which assists employers with managing stock-compensation plans and benefits, saw its assets increase by 12% year over year, totaling $534 billion.
Wealth Management Goals
Morgan Stanley CEO Ted Pick highlighted the success of the financial advisor, workplace, and E-Trade channels, with the business attracting over $350 billion in net new assets last year. The firm has seen significant growth in fee-based flows over the past five years, attracting over $1.6 trillion in net new assets.
Chief Financial Officer Sharon Yeshaya emphasized the firm’s wealth management funnel, which brings clients in through self-directed or workplace accounts and transitions them to relationships with financial advisors. Morgan Stanley aims to maintain a pretax margin of 30% in its wealth management business, which reached 31% in the last three quarters of 2025.
Future Prospects and Financial Performance
Morgan Stanley remains open to M&A opportunities, with a focus on maintaining high standards for potential deals. The firm recently acquired EquityZen to enhance its wealth management offerings. Buoyed by asset gains, Morgan Stanley’s wealth management revenue rose by 13% year over year in the fourth quarter, reaching over $8.4 billion. Net income also increased by 33% to $2 billion.
Yeshaya highlighted the firm’s investments in artificial intelligence and technology, which are driving up costs but also leading to savings. Technologies like the internal LeadIQ system, powered by AI, are improving client-advisor connections and driving margins on both the revenue and expense sides.
Source: Financial Planning
