Morgan Stanley reported third-quarter profit growth as equities trading revenue
jumped to $5.8 billion versus $4.9 billion expected, and its wealth-management
business posted a record $232 billion of net new assets. The firm said roughly
half of the net inflows were linked to IPO activity. Morgan Stanley’s
investment-banking teams participated in several large listings this year,
including SpaceX’s IPO; SpaceX is also a client of the firm’s employee services
unit, which provides equity-compensation, retirement and other employee
benefits. Management has shifted toward wealth management since the 2008
financial crisis, and a series of acquisitions has expanded the division’s
assets under management to $8.4 trillion.
