Morgan Stanley Overhauls Discretionary Portfolios to Help FAs Make Choices

October 15, 2020

Morgan Stanley has rebranded its proprietary discretionary portfolios with the goal of making it easier for financial advisors to make their selections, according to news reports.

“We needed to get more granular and descriptive about what these portfolios are, so that selection is easier for the advisor and end client,” says Paul Ricciardelli, head of wealth advisory solutions at Morgan Stanley, according to FA-IQ sister publication FundFire.   

The goal was to change “the way financial advisors do business and really making things as easy as possible for them,” he tells the publication. 

Morgan Stanley has split its proprietary discretionary unified managed account portfolios into global solutions, which are designed from inputs from Morgan Stanley’s global investment committee, and select solutions, which are client-tailored, FundFire writes. 

UMA portfolios are part of Morgan Stanley’s total portfolio solutions, which are in turn part of the Morgan Stanley Portfolio Solutions platform, according to FundFire. MSPS also includes managed advisory portfolio solutions the publication writes. 

Morgan Stanley's global solutions offering includes portfolios that rely on tactical or strategic asset allocations put together through active and passive portfolios, which include mutual funds, exchange-traded funds and portfolios constructed with separately managed accounts, according to FundFire. 

Meanwhile, Morgan Stanley’s select solutions category, which is new for the wirehouse, includes proprietary model portfolios with allocations that are U.S.-focused, as well as portfolios focused on income, on environmental, social and governance factors, and on socially responsible investing strategies, Ricciardelli says.

Dennis Gallant, senior analyst at Aite Group, tells FundFire that revamping the categorization methods makes sense. As Morgan Stanley builds out its offerings of portfolios, and as advisors adopt model portfolios, wealth management firms in general are likely to better segment their offerings, Gallant says.

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By Alex Padalka
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