Morgan Stanley (NYSE:MS.PK) Barclays World Monetary Providers Convention September 13, 2022 11:15 PM ET
Firm Contributors
Andy Saperstein – Co-President & Head of Wealth Administration
Convention Name Contributors
Unidentified Analyst
Subsequent up, very happy to have Morgan Stanley with us. From the corporate, Andy Saperstein, who’s Co-President and Head of Wealth Administration. And Andy, we particularly such as you making the journey. I do know you had elective surgical procedure late final week, so we recognize you continue to making an effort to be right here.
Earlier than we soar in, I ought to notice, Leslie [ph] requested me to do that. This dialogue might embrace forward-looking statements, which replicate Morgan Stanley administration’s present estimates and topic to dangers and uncertainties which will trigger precise outcomes to vary materially. Morgan Stanley doesn’t undertake to replace the forward-looking statements. This dialogue, which is integrated by Morgan Stanley, and might not be duplicated or reproduced with out their consent, shouldn’t be a proposal to purchase any safety.
So earlier than we kick it off, Andy, as I discussed, Co-President and Head of Wealth Administration. Wealth Administration generated nearly $6 billion of revenues within the second quarter, nearly 45% of the corporate’s income. So it is a massive enterprise. And simply to think about it in perspective, when it comes to revenues, it will be the ninth largest financial institution within the US forward of like a Truist or a PNC, each of which you heard from this morning. So it is a very, very massive enterprise. Clearly, given Andy can be a co-President, we will broaden out the dialog.
Query-and-Reply Session
Q – Unidentified Analyst
However earlier than we start, possibly simply put up the primary couple of ARS questions, like we have completed for others? Simply, what’s your present place in Morgan Stanley after which we’ll rank the businesses on the finish. And, I suppose, Andy, as they reply, why do not we simply soar proper in and possibly one of the best place to begin is, possibly simply discuss at a excessive degree of simply what you are observing when it comes to the retail investor conduct and flows towards the present backdrop?
Andy Saperstein
Sure, certain. So, thanks for having me right here. So for those who consider the retail investor and notably, if you consider Wealth Administration and what we’re — what notably our monetary advisers are designed to do, they’re designed to assist shoppers assume long run, take into consideration their life aims and what sort of — how they need to arrange their monetary lives and their portfolios to assist them meet these monetary aims.
So what you’d hope our shoppers would do is, act rational in periods of volatility and in periods like this, the place there’s plenty of market uncertainty, as a result of the concept is to assume by way of these market cycles. And that is mainly what you are seeing from our shoppers.
If I had to make use of one phrase to explain our shopper conduct, I might name it rational. We’re clearly — we’re seeing some decreased degree of transactional exercise that is come again a bit extra not too long ago. That is the retail investor. Money has elevated ranges. However nothing — however actually nothing that I might say is both shocking or something however rational in case you have a market like this. The opposite factor that we’re seeing if I had to make use of one other phrase I might in all probability say opportunistic.
So what we’re seeing shoppers do is search for pockets of alternatives. So for instance, areas the place there’s dislocation within the mounted revenue market, single principal mounted revenue, munis for a time frame various investments proceed to be extraordinarily sturdy.
Every of the final two years has been a file from the yr earlier than. Every of the primary quarter this yr was a file from the quarter earlier than. That is not shocking once more, since you would anticipate shoppers to be trying in the direction of various investments to additional diversify their portfolios and search for non-correlated belongings.
And any sort of an asset that frankly is, I might nearly name it a fancy instrument like tax benefit devices like Parametric which we bought within the current Eaton Vance transaction. These are clearly very, very sturdy as effectively. So I might name it rational and opportunistic.
Unidentified Analyst
Is sensible. One space plenty of questions on is NNA, Internet New Property. We hear rather a lot about — in Wealth Administration, exceeded $50 billion final quarter regardless of volatility within the markets and client-related tax withdrawals assume it is a full $195 billion year-to-date. Sort of possibly what differentiates the platform and lets you put up such massive numbers?
Andy Saperstein
Yeah. And clearly the — our web new belongings has gotten plenty of consideration because it ought to, as a result of that is a measure of natural progress in — for those who take a look at the final six quarters we introduced in nearly $650 billion of NNA. And such as you say this yr even in a troublesome atmosphere nearly $200 billion within the first half.
So your query is the suitable one. So let me simply take a step again. And the best way we take into consideration our group, you may hear me say this in all probability numerous instances at present is we consider ourselves as a class of 1.
And that is by design that we have created that as a result of, we do not have a enterprise mannequin that appears like another group’s enterprise mannequin and our efficiency could be very totally different. And the place we’re capturing these flows, the place we’re capturing that natural progress can be very totally different.
And we have been very deliberate in, how we constructed out the group this manner. So the very first thing for those who return to the primary precept that we imagine in Wealth Administration is you want scale. And we have been saying that now for greater than a decade.
And clearly with the Smith Barney acquisition again through the disaster we bought our scale. And the rationale you want scale is, as a result of no matter whether or not you may have 500 advisers, 5,000 advisers or 15,000 advisers you continue to want to take a position actual assets in supporting these advisers.
You want subtle expertise. We imagine in a technology-supported adviser. You want monetary planning. We have now one thing referred to as Subsequent Finest Motion which is synthetic intelligence powered instruments for advisers.
We have now risk-based expertise that helps our advisers assess portfolio threat. You want specialist assets like options and belief and property and tax planning like I discussed mental capital and so forth and so forth. You want an awesome analysis group. And also you want this no matter what number of advisers you may have.
So as soon as we obtain the dimensions, we began to take a position very closely in these assets and that gave our advisers an actual aggressive benefit in offering recommendation to shoppers notably in periods of decrease volatility instances the place they’re focusing their shoppers on placing collectively a portfolio that may climate a storm.
So throughout instances like these, you begin to actually see some advantages and that is precisely what we’re seeing now as a result of our shoppers really feel very effectively – really feel very well-supported. You are seeing plenty of shoppers consolidate their belongings with Morgan Stanley. You are seeing plenty of prospecting exercise in periods of volatility as a result of shoppers elsewhere that both do not feel like they have been absolutely ready for such a a market or shoppers that weren’t getting recommendation in periods of low volatility are on the lookout for an adviser. So you actually begin – what you begin to see within the recommendation channel, you begin to see plenty of exercise, plenty of engagement. However then what actually makes us a class of 1 involves the 2 new channels that we have constructed largely by way of acquisition.
So first, we’ve to go to the office. We purchased Solium. After which – which gave us a powerful place within the office, which was then bolstered by our acquisition of E*TRADE, which in fact strengthened that place as a result of they’d a really sturdy office presence as effectively. And naturally the acquisition of E*TRADE gave us a number one place within the self-directed channel.
So for those who take a look at throughout our group proper now, we’re – we’ve a strong place in each – within the self-directed, within the office and the full-service recommendation channel. So what we prefer to say is that we’ve one thing for everybody. We will meet, no matter your age, your degree of wealth, your channel choice, the stage of your monetary life. We will meet you the place you might be and the place you need and we are able to develop with you over the course of your monetary life. And that is a very highly effective place to be.
One factor that I ought to point out and possibly we are able to – we’ll in all probability speak about this somewhat bit extra going ahead is if you see the form of natural progress that we’ve folks at all times say so the place is it coming from? Precisely the place? This class on – the multi-channel strategy that we’ve, there isn’t a one channel. There isn’t a one place that is driving nearly all of these belongings. It’s coming from so many various locations. And we are able to proceed due to our scale, we are able to proceed to spend money on the platform to guarantee that whereas we’re delivering present efficiency, we’re additionally investing to guarantee that we proceed progress going ahead.
Unidentified Analyst
And I suppose how ought to we take into consideration form of a normalized degree for NNA?
Andy Saperstein
Sure. So like I mentioned, over the past six quarters, final yr we introduced in $438 billion of web new belongings that equated to about 11%. We got here out, we mentioned, do not anticipate that year-in, year-out. We – we have mentioned – I suppose there’s two ways in which I suppose you might take into consideration a normalized degree of web new belongings which I am going to offer you. First, for those who anticipate someplace within the neighborhood of 5% to 7% yea-in, year-out by way of a cycle you will not be disenchanted.
One other method of taking a look at it, and that is the best way I do take a look at it as a result of you’ll be able to’t take into consideration web new belongings quarter-by-quarter, we might report web new belongings on a quarter-by-quarter foundation however you actually cannot glean that a lot each single quarter as a result of they do not have a tendency to return in that easy. I consider it over multi years.
So for those who anticipate that we’ll herald about $1 trillion of web new belongings each three years or so, that is the best way I give it some thought. I like to consider web new belongings if I wished to offer you a normalization anticipate $1 trillion of web new belongings each three years or so.
Unidentified Analyst
Wholesome. I suppose if you talked about this class of 1, you clearly have the self-directed channel, this office channel. And it looks like, form of, changing shoppers from these two channels so the advisory channel is simply an enormous alternative. I suppose, how are you approaching this? Are you able to do that at present? Do you should put extra infrastructure in place to make the most of this chance?
Andy Saperstein
Sure, that is a very — that is really a very vital query. So let me step again for a second and describe this. You in all probability heard us discuss somewhat bit in regards to the funnel, okay? And that is an idea that we’ve the place for those who look again simply a few years in the past we had 2.5 million shopper relationships. They have been all relationships that we had with full service advisers on the time. And so there was a moist signature for every of them once they turned a shopper.
Now we’ve relationships with 16.5 million shoppers and that quantity is rising in a short time. And when folks ask me, what are among the metrics that I take a look at regularly to handle the enterprise? The variety of relationships that we’ve and the expansion of these numbers of relationships that we’ve that go into that funnel that’s one thing that I take a look at regularly as a result of every of these relationships represents actual alternative.
And clearly proper now plenty of these relationships are digital as a result of they got here within the office they got here within the self-directed channel. And what we’ve is we’ve an effort happening which you described we name it Undertaking Genome. And it is a mind-set about every particular person shopper as a person genome. You prefer to — hopefully you want somewhat time period that is the individualized DNA.
So the best way we give it some thought is that it is our job by way of expertise, by way of deepening relationships with shoppers by each interplay with our shopper we be taught extra in regards to the shopper. We will take into consideration them as a person. So for those who assume traditionally the best way Monetary Providers has thought of shoppers it is by way of segmentation which is a really rudimentary mind-set a few shopper simply broad brush strokes what number of belongings they’ve on the agency or by ICI numbers or issues like that.
We need to perceive we need to know every shopper we’ve as a person by way of each contact level we’ve with them no matter what channel no matter how we work together with them and we need to construct these trust-based relationships and deepen these relationships with these shoppers. So we might be there for them with the suitable product, the suitable service, the suitable degree of knowledge, the suitable mental capital, the suitable article, the suitable query on the proper time with the suitable place with the suitable channel. That is one thing that’s new in Monetary Providers.
It is one thing that is rather more sometimes considered on this planet of expertise and plenty of the brand new hires that we make come from outdoors the trade usually because that is one thing that may drive plenty of progress for us. So if you consider the place plenty of the expansion goes to return from sooner or later, it is the 16 million relationships that we’ve and rising as we deepen relationships with them. Their lives are going to alter.
Proper now, we’ll serve them as they’re. Their lives change into extra complicated. They might want totally different merchandise. They might want recommendation over a time frame. Numerous them might not. We’ll develop with them as they’re and as they need and we’ll develop with them over time. So we at all times have one thing for them at Morgan Stanley.
The rationale why I spent somewhat further time on this one and I wished to explain it in such element and also you’re proper to ask about it’s as a result of if you consider this chance proper now and the kind of belongings that we’re bringing in proper now, that is within the early innings. That is one thing that we’re simply starting to discover study and drive. Over time, it would change into a a lot larger element a a lot larger portion of our progress in our new belongings. We’re solely within the early phases of studying how to consider shoppers on this genome-type idea.
Unidentified Analyst
Acquired it. After which once we’re getting ready for this we have been form of taking a look at market shares form of throughout plenty of these companies that form of discuss wealth administration. And as massive as Morgan Stanley Wealth Administration is, you are actually small in areas like retirement options institutional consulting household workplace. Is there a cause – are these alternatives? Simply form of the way you’re approaching that?
Andy Saperstein
So, let me take every of these individually, okay? As a result of every of them is a unique alternative and every alternative has its personal idiosyncratic facets to it. So, we’ll take inventory plan administration, which in the meanwhile is the biggest of the alternatives. And with that, we constructed out a powerful place each as I discussed by way of the acquisition of Solium and the acquisition of E*TRADE, each of whom had very sturdy inventory plan administration capabilities. And the rationale, why that is vital is the underlying, company the underlying shopper cares deeply in regards to the expertise that drives that inventory plan administration.
The rationale why it is vital for them and vital for us is, as a result of now we’ve entry to these underlying workers at an vital time of their lives, when inventory vests. This is a vital – of their monetary lives, that is once they have an actual choice to make. They usually may have recommendation in making that call. And we’ll be there. We have now very sturdy monetary schooling monetary wellness assets. We have now agreements with the entire underlying company shoppers that we’ve that they – as a shopper profit we are able to attain out to those shoppers. We will market to them. We will educate them. We will throw seminars.
We will attain out to them each digitally and in individual so we can assist them form their monetary lives. And what we’re discovering once we contact these workers is plenty of them have cash want recommendation might or might not have identified that they want recommendation, however wish to have monetary recommendation, and did not both know that they might have entry to a Morgan Stanley adviser, or did not understand how they might get entry to a Morgan Stanley adviser.
So we’re seeing plenty of curiosity from these underlying workers within the Morgan Stanley mental capital for certain. And likewise we’re making plenty of referrals out to our monetary advisers, as a result of these persons are certainly on the lookout for recommendation. And that is one thing that is beginning to develop. And what we’re additionally discovering is that, the precise belongings that these traders have once they change into full-service shoppers is someplace within the neighborhood of 9 or 10x, what the belongings have been that we’re vesting.
So the vested belongings whereas engaging are in some respects the tip of the iceberg of what the precise alternative is. And this once more, is one other early section alternative for us. That is – it is nonetheless early days that we’re actually constructing these relationships and deepening plenty of these relationships, much like what I talked about in Undertaking Genome. That is – nevertheless it’s an actual massive alternative.
Two different ones, I am going to simply point out comparatively rapidly. First, you talked about institutional consulting. What we have completed is we have checked out various kinds of markets which might be fragmented that in our view should not be fragmented. And the world of institutional consulting is a $50 trillion trade, which is awfully fragmented. And if you consider it, there is no nice cause why it ought to be fragmented. A smaller — it grew up that method, however a smaller dispersed group would not have the product platform and would not have the expertise and the cybersecurity safety and the entire different issues that you’d anticipate that they would wish to actually compete on this planet that we’re in at present.
And we do. We have already constructed out that platform. There’s one other added cause why the institutional advisor would need to be a part of Morgan Stanley, which is once more of their company shoppers they’re the underlying workers, which we are able to present monetary recommendation, monetary schooling, monetary wellness, comparable as we do within the inventory plan administration and assist them to develop retail relationships with these workers. So it is an untapped — it is one other untapped alternative.
We have begun the method, as I feel you have seen of, we have already bought two comparatively giant institutional consultants and we’re nonetheless on the market speaking to many others, as a result of it is a proper alternative for roll-ups. And if you consider that underlying alternative these two institutional consultants that we purchased alone signify a whole lot of hundreds of relationships that now we’re beginning to deepen.
And the final one simply in talking round alternatives, that are fragmented, however giant alternatives is our new household workplace — our household workplace alternative. We — mainly this started as a three way partnership with ISG, with our institutional colleagues. We took fund providers. We invested in it to make — to create a technological resolution that could be very interesting to household workplaces. We will present administrative providers, just like the consolidated basic ledger to report on their holdings and their efficiency, which is awfully engaging to a household workplace.
There’s by no means been a household workplace providing at scale that addresses their giant ache factors. Once more, it is one other space that has been fragmented, however in our view should not be fragmented. And we have already introduced in — we have introduced $25 billion of belongings into our household workplace, which is comparatively new, nevertheless it’s going extraordinarily effectively and there is a lengthy checklist of shoppers now ready to get on to our household workplace providing, so plenty of alternative.
Unidentified Analyst
Nice. I am going to possibly put up the subsequent ARS query. Which of the next — I haven’t got that is the subsequent one. All proper. We’ll go together with this one. Which is the next can be wanted to change into extra bullish on the shares of MS? And as they’re answering this, I believed that is a unique query, however I will soar over to form of Wealth Administration pre-tax margin. You’ve got talked to a 30% plus objective, I feel, it was nearer to 20% within the second quarter. What do you should do to get to 30%? And given the investments which have already been made and the dimensions nature of the enterprise, let me take a look at look out 10 years the place do you assume you will get it to?
Andy Saperstein
Properly, two questions. So the primary one is enjoyable, as a result of — it’s a query I in all probability get essentially the most, which is once we hit 30% margins. I like this query, as a result of it permits me to stroll down reminiscence lane. Once I first bought to Morgan Stanley, we have been in single-digit margins, and folks requested if we might get to 10%. After we purchased Smith Barney, there was a few years the place we’re attempting to get to 20%, and now we’re speaking about 30%.
Margins are successfully as you already know an element of the 2 issues, which I have been speaking about, which is scale and progress. We’re a scale participant. We develop and admittedly, margin is the output of all of these. So we’re assured, we’ll cross 30% margins in a method for those who wished to consider it. We might do it at present. However what we do is we steadiness the funding within the platform, the funding in our enterprise to guarantee that we’re nonetheless constructing out all of these — constructing out the entire assets and capabilities that we have to develop over time and with present efficiency. So if I take into consideration 30%, what I am actually considering by way of is I am considering by way of 30% to sustaining our scale and simply persevering with to develop. The place it might be over time fairly frankly shouldn’t be one thing that I take into consideration actively. What I am actually enthusiastic about is continuous that progress trajectory that we’ve.
Unidentified Analyst
Is sensible. In Wealth Administration, you talked about concentrating on full yr mortgage progress of I feel $22 billion. Deposits fell $12 billion within the second quarter. Are you able to possibly replace when it comes to what you are seeing, how is the present financial backdrop impacting mortgage developments? And may we anticipate an additional decline in deposits to mid larger charges?
Andy Saperstein
So we’ve seen some moderation in our mortgage progress. Rising charges have dampened the demand for mortgage that is not a shock to anybody. Depressed asset values impacted engagement in SBL. Once more, not a shock to anyone within the room. With that mentioned, engagement stays sturdy. We’re nonetheless snug with the lending progress that we talked about of $22 billion in 2022. And with regard to deposit conduct and beta, these are anticipated to carry out in step with what we noticed within the final charge hike cycle and in step with — and it has been performing in step with our fashions. And general, our objective is to guarantee that we’re retaining general belongings at Morgan Stanley and it is one thing that we’re centered on.
Unidentified Analyst
Okay. And I suppose in close to time period I believe decrease asset values are impacting revenues. I suppose, how correlated are revenues to the markets? And I do know one of many earnings name Sharon pointed to $500 million of incremental NII over the subsequent couple of quarters, albeit extra so in 4Q. Is that sufficient to offset anticipated payment pressures?
Andy Saperstein
Wealth Administration is a really resilient enterprise. And that is one other query that in some respects I get pleasure from as a result of throughout bull markets, the query that I get requested most frequently is certain Wealth Administration is performing effectively in bull markets, however how will it do when fairness markets go down? Can it nonetheless carry out effectively? And for a few years, all I might do was make the promise that it will even within the face of that. We did not have something empirical. Properly, for those who take a look at simply this yr, this yr if I am not mistaken, for those who take the primary half it was the worst first half of the S&P since I feel 1970. The bond market was — we had a troublesome interval within the bond market, but for those who take a look at the efficiency of our Wealth Administration enterprise within the first half bearing in mind DCP which in fact in down markets has a dampening impact on income, though no actual impact on no materials impact on PBT. We’re at or about file income PBT and margin even in a yr the place we had such poor fairness market efficiency and bond market efficiency. So that ought to allay the considerations, that we have had through the years, if there have been any anymore that Wealth Administration is a really, very resilient enterprise.
Unidentified Analyst
Acquired it. And I suppose, on the prime of the dialogue, we have talked in regards to the retail investor, however you are additionally Co-President so possibly did not broaden out and get your views when it comes to, what you are listening to and seeing from each the agency’s investing coaching shoppers, in addition to form of the funding banking shoppers.
Andy Saperstein
Certain, certain. So funding banking has remained muted by way of the summer time. In some unspecified time in the future, that can change. Markets will quiet down and shoppers will transact, however that is not imminent. Gross sales & Buying and selling shoppers are engaged. We have seen respectable exercise proceed into the third quarter, not less than into the everyday summer time slowdown that you simply at all times see on the finish of August. And — however throughout the board, what I might say is that corporates and traders are nonetheless engaged and we’re serving to them actually navigate this unsure atmosphere.
Unidentified Analyst
And I suppose on the earnings name James, talked to — I made the remark, I feel given the broader market uncertainty on an inflationary atmosphere form of an elevated emphasis on discretionary spend. In gentle of the present backdrop, any replace on the fee entrance?
Andy Saperstein
Sure. So, through the years I feel as a administration staff, we have confirmed that we’re actually disciplined on bills and we take excellent care of our expense ratios. We’re nonetheless making investments as I discussed a number of instances, we’re nonetheless making actual investments to supply for future progress. However we’ll stay disciplined each when it comes to, bills and capital deployment.
Unidentified Analyst
Acquired it. And it is attention-grabbing. If you happen to look in the meanwhile Financial institution of America, Citigroup, JPMorgan are at or beneath the place they have to be for CET1 for the primary quarter. Goldman’s talked about wanting to maneuver down a G-SIB bucket. Are there elevated alternatives, for the general agency to place its steadiness sheet to work? I do know James has talked rather a lot about share buyback. Simply how do you form of steadiness the 2?
Andy Saperstein
Sure. Sure. So, capital administration is — we consider capital administration, as a lot part of our technique as the rest and we’re very deliberate round it. Simply as like I discussed, simply as deliberate as we’re about bills and the general enterprise and investments that we make. That is the best way we take into consideration our capital deployment. We’ll proceed our buybacks. They’re an vital a part of our multiyear $20 billion authorization. We doubled the dividend final yr. We elevated it by 11% this yr. In order that signifies, that the dividend is vital to us. And our general objective, is to take care of capital flexibility and proceed to be prudent within the space.
Unidentified Analyst
Acquired it. And you then purchased E*TRADE, purchased Eaton Vance, purchased Solium all you form of talked about. All of the acquisitions appear to go effectively, introduced plenty of alternatives. How do you assume we must always take into consideration extra acquisitions?
Andy Saperstein
So, if I step again simply round acquisitions. And sure, to your level, we have completed very effectively with acquisitions. Smith Barney, gave us scale. Like I discussed, Solium and E*TRADE actually created — made us right into a class of 1 by giving us that multichannel strategy that we talked about. Eaton Vance, is giving us new capabilities and has actually helped our funding administration group change into rather more diversified and all of the acquisitions have completed effectively.
What I inform of us is that to make an acquisition profitable, you want three issues and we had all three with the acquisitions that we did. The primary one is there must be an actual strategic cause for purchasing it. And I do know that many organizations each time they do it, they state a strategic cause. However you really want — it wants to suit inside an general technique and we had that with every of the acquisitions that we did.
The second factor that you simply want is you want a powerful tradition. Acquisitions generally for my part that is underestimated. Every of the acquisitions that we did there was an excellent strategic cause they believed within the imaginative and prescient and that work. However the factor that I feel generally additionally will get underappreciated in acquisitions is how disciplined you should be round course of about integrating the organizations into one another. You want to fulfill the aims. You want to successfully make these investments and keep centered on creating an built-in group that lets you try this.
In order that to shoppers you create a unified shopper expertise that makes them proceed to take a look at you as one group. And so after I talked in regards to the genome and I talked in regards to the funnel, they take a look at our totally different channels although they got here from totally different organizations. They take a look at that as one steady shopper expertise.
We’re — we’ll at all times look — we’re profitable in acquisitions nevertheless it must match these standards. It must make sense. One of many issues that I’ve been centered on recently and you may hear extra about this I am certain over the approaching months and years is simply as we have been profitable in integrating acquisitions into our platform, we’re on the market proper now on the lookout for a really modern expertise. And we needn’t purchase expertise organizations.
We have to discover technological organizations whether or not they’re fintech or whether or not they’re tech that may assist remedy issues that we’ve and assist us transfer our group ahead in modern methods. And the trick to that isn’t solely discovering the suitable sort of organizations however like I discussed within the scheme of acquisitions being good at integrating that expertise into your general platform to once more make it seamless. And if you are able to do that then you’ll be able to actually turbocharge the kind of innovation that you simply’re driving throughout your platform. It is one thing we’re very, very centered round. And you will have seen I even created a separate group inside Wealth Administration centered solely on this and we’re working very laborious on driving that sort of innovation. We’re engaged with some actually thrilling fintech and different tech-type organizations proper now in integrating them into our platform.
Unidentified Analyst
Acquired it. After which your Co-President and Head of Wealth Administration; Ted Decide as Co-President, Head of the Institutional Securities Group. Are you able to possibly speak about as these roles have advanced, how have you ever two work collectively in bringing the agency collectively?
Andy Saperstein
Look, the connection throughout the administration staff, our relationship with Ted is among the issues that basically for my part says we will stand partially simply as a tradition. And it truly is a significant aggressive benefit. The kind of collaboration that we’ve, The kind of collaboration that we’ve, the kind of — the best way by which we work collectively throughout the group is particular and it positively leads to actual enterprise. I already talked about as an excellent instance, the household workplace enterprise that we created which was a three way partnership, leveraging their fund providers group and constructing it out to serve household workplaces in a method that no different group might. Ted and I — simply for example, we meet collectively. We go and we go to corporates collectively.
We go in and go to shoppers collectively as a result of, if for these shoppers to think about Morgan Stanley general as a company, that may assist them in so many various methods, we are able to handle their inventory plan. We will take them — we are able to take them public, we are able to handle their cap tables. We will increase cash for them. We will — we’ve — plenty of them are already on our platform. There’s so many various methods, that we are able to contact and work with totally different company shoppers throughout the entire companies of Morgan Stanley. And when you consider — if you assume form of broadly in that method and expansively, about how Morgan Stanley as one group can serve shoppers general, it opens up your eyes and it opens up the group to many extra alternatives for each deepening relationships with shoppers and likewise for doing extra enterprise.
Finish of Q&A
Unidentified Analyst
Nice. On that notice, please be part of me in thanking Andy for his time at present.
Andy Saperstein
Thanks.