Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000.The company reports US$779 billion as assets under its management. It is headquartered in Midtown Manhattan, New York City.
The corporation, formed by J.P. Morgan & Co. employees Henry S. Morgan (grandson of J.P. Morgan), Harold Stanley and others, came into existence on September 16, 1935. In its first year the company operated with a 24% market share (US$1.1 billion) in public offerings and private placements. The main areas of business for the firm today are Global Wealth Management, Institutional Securities and Investment Management.
The company found itself in the midst of a management crisis in the late 1990s that resulted in a loss of a number of the firm's staff and ultimately saw the firing of its then CEO Philip Purcell in 2005.
Morgan Stanley, incorporated in 1981, is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to a group of clients and customers, including corporations, governments, financial institutions and individuals. The Company is a financial holding company. The Company is a global financial services firm. The Company operates in three segments: Institutional Securities, Global Wealth Management Group and Asset Management. Institutional Securities provides capital raising; financial advisory services, including advice on mergers and acquisitions, restructurings, real estate and project finance; corporate lending; sales, trading, financing and market-making activities in equity and fixed income securities and related products, including foreign exchange and commodities, and investment activities. Global Wealth Management Group, which includes the Company’s 51% interest in Morgan Stanley Smith Barney Holdings LLC (MSSB), provides brokerage and investment advisory services to individual investors and small-to-medium sized businesses and institutions covering various investment alternatives; financial and wealth planning services; annuity and other insurance products; credit and other lending products; cash management services; retirement services; and trust and fiduciary services and engages in fixed income principal trading, which facilitates clients’ trading or investments in such securities. Asset Management provides a range of investment strategies that span the risk/return spectrum across geographies, asset classes and public and private markets to a range of clients across the institutional and intermediary channels, as well as high net worth clients. On June 1, 2010, the Company sold its retail asset management business, including Van Kampen Investments, Inc., to Invesco Ltd. During the year ended December 31, 2010, the Company completed the disposal of CityMortgage Bank (CMB), a Moscow-based mortgage bank.
Institutional Securities
The Company provides financial advisory and capital-raising services to a range of corporate and other institutional clients globally, through wholly owned subsidiaries that include Morgan Stanley & Co. Incorporated (MS&Co.), Morgan Stanley & Co. International plc and Morgan Stanley Asia Limited, and certain joint venture entities that include Morgan Stanley MUFG Securities Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. These entities also conduct sales and trading activities globally, as principal and agent, and provide related financing services on behalf of institutional investors. The Company manages and participates in public offerings and private placements of debt, equity and other securities globally. The Company is an underwriter of common stock, preferred stock and other equity-related securities, including convertible securities and American depositary receipts (ADRs). The Company is also a underwriter of fixed income securities, including investment grade debt, non-investment grade instruments, mortgage-related and other asset-backed securities, tax-exempt securities and commercial paper and other short-term securities. The Company provides corporate and other institutional clients globally with advisory services on key strategic matters, such as mergers and acquisitions, divestitures, joint ventures, corporate restructurings, recapitalizations, spin-offs, exchange offers and leveraged buyouts and takeover defenses, as well as shareholder relations. The Company also provides advice concerning rights offerings, dividend policy, valuations, foreign exchange exposure, financial risk management strategies and financial planning. In addition, the Company furnishes advice and services regarding project financings and provides advisory services in connection with the purchase, sale, leasing and financing of real estate.
The Company provides loans or lending commitments, including bridge financing, to selected corporate clients through its subsidiaries, including Morgan Stanley Bank, N.A (MSBNA). The Company conducts sales, trading, financing and market-making activities on securities and futures exchanges and in over-the-counter (OTC) markets globally. The Company’s Institutional Securities sales and trading activities include equity trading; interest rates, credit and currencies; commodities; clients and services, and investments. The Company trades, invests and makes markets in fixed income securities and related products globally, including, among other products, investment and non-investment grade corporate debt, distressed debt, bank loans, the United States and other sovereign securities, emerging market bonds and loans, convertible bonds, collateralized debt obligations, credit, currency, interest rate and other fixed income-linked notes, securities issued by structured investment vehicles, mortgage-related and other asset-backed securities and real estate-loan products, municipal securities, preferred stock and commercial paper, money-market, and other short-term securities.
The Company is a dealer of the United States federal government securities and a member of the selling groups that distribute various the United States agency and other debt securities. The Company is also a dealer or market-maker of government securities in European, Asian and emerging market countries. The Company trades, invests and makes markets globally in listed futures and over-the-counter (OTC) swaps, forwards, options and other derivatives referencing, among other things, interest rates, currencies, investment grade and non-investment grade corporate credits, loans, bonds, the United States and other sovereign securities, emerging market bonds and loans, credit indexes, asset-backed security indexes, property indexes, mortgage-related and other asset-backed securities and real estate loan products. The Company trades, invests and makes markets in foreign currencies, such as the British pound, Canadian dollar, euro, Japanese yen and Swiss franc, as well as in emerging markets currencies. The Company trades these currencies on a principal basis in the spot, forward, option and futures markets. The Company also provides financing to customers for commercial and residential real estate loan products and other securitizable asset classes. In addition, the Company engages in principal securities lending with clients, institutional lenders and other broker-dealers.
The Company structures debt securities, derivatives and other instruments with risk/return factors designed to suit client objectives, including using repackaged asset and other structured vehicles through, which clients can restructure asset portfolios to provide liquidity or reconfigure risk profiles. The Company invests and makes markets in the spot, forward, physical derivatives and futures markets in several commodities, including metals, agricultural products, crude oil, oil products, natural gas, electric power, emission credits, coal, freight, liquefied natural gas and related products and indices. The Company is a market-maker in exchange-traded options and futures and OTC options and swaps on commodities, and offers counterparties hedging programs relating to production, consumption, reserve/inventory management and structured transactions, including energy-contract securitizations and monetization. The Company is an electricity power marketer in the United States and owns electricity-generating facilities in the United States and Europe. The Company owns TransMontaigne Inc. and its subsidiaries, a group of companies operating in the refined petroleum products marketing and distribution business, and owns a minority interest in Heidmar Holdings LLC, which owns a group of companies that provide international marine transportation and the United States marine logistics services. The Company provides financing services, including prime brokerage, which offers, among other services, consolidated clearance, settlement, custody, financing and portfolio reporting services to clients trading multiple asset classes. In addition, the Company’s institutional distribution and sales activities are overseen and coordinated through clients and services.
Global Wealth Management Group
The Company’s Global Wealth Management Group, which included the Company’s 51% interest in MSSB, provides financial services to clients. Global Wealth Management Group professionals serve individual investors and small-to-medium sized businesses and institutions. Global representatives are located in branches across the United States and provide solutions designed to accommodate individual investment objectives, risk tolerance and liquidity needs. Outside the United States, Global Wealth Management Group offers financial services to clients in Europe, the Middle East, Asia, Australia and Latin America. The Company’s Global Wealth Management Group provides clients with a range of financial solutions, including products and services from the Company, Citigroup Inc. (Citi) and third-party providers, such as insurance companies and mutual fund families. Global Wealth Management Group provides brokerage and investment advisory services covering various investments, including equities, options, futures, foreign currencies, precious metals, fixed income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts and mutual fund asset allocation programs. Global Wealth Management Group also engages in fixed income principal trading, which facilitates clients’ trading or investments in such securities. In addition, Global Wealth Management Group offers education savings programs, financial and wealth planning services, and annuity and other insurance products.
Global Wealth Management Group offers the Company’s clients access to several cash management services through various affiliates, including deposits, debit cards, electronic bill payments and check writing, as well as lending products, including securities based lending, mortgage loans and home equity lines of credit. Global Wealth Management Group also provides trust and fiduciary services, offers access to cash management and commercial credit solutions to qualified small- and medium-sized businesses in the United States, and provides individual and corporate retirement solutions, including individual retirement accounts and 401(k) plans and the United Statesand global stock plan services to corporate executives and businesses. Global Wealth Management Group provides clients a range of ways to establish a relationship and conduct business, including brokerage accounts with transaction-based pricing and investment advisory accounts with asset-based fee pricing.
Asset Management
The Company’s Asset Management business segment is a global investment management organization and offers clients a range of equity, fixed income and alternative investments and merchant banking strategies. Portfolio managers located in the United States, Europe and Asia manage investment products ranging from money market funds to equity and fixed income strategies, alternative investment and merchant banking products in developed and emerging markets across geographies and market cap ranges. The Company offers a range of alternative investment, real estate investing and merchant banking products for institutional investors and high net worth individuals. The Company’s alternative investments platform includes hedge funds, funds of hedge funds, funds of private equity funds and portable alpha strategies. The Company’s alternative investments platform also includes minority stakes in Lansdowne Partners, Avenue Capital Group and Traxis Partners LP.
The Company’s real estate and merchant banking businesses include its real estate investing business, private equity funds, corporate mezzanine debt investing group and infrastructure investing group. The Company acts as general partner of, and investment adviser to, its alternative investment, real estate and merchant banking funds. The Company provides investment management strategies and products to institutional investors global, including corporations, pension plans, endowments, foundations, sovereign wealth funds, insurance companies and banks through a range of pooled vehicles and separate accounts. In addition, the Company provides sub-advisory services to various unaffiliated financial institutions and intermediaries.
The Company offers open-end and alternative investment funds and separately managed accounts to individual investors through affiliated and unaffiliated broker-dealers, banks, insurance companies, financial planners and other intermediaries. Closed-end funds managed by the Company are available to individual investors through affiliated and unaffiliated broker-dealers. The Company also distributes mutual funds through numerous retirement plan platforms. Internationally, the Company distributes traditional investment products to individuals outside the United States through distributors and distributes alternative investment products through affiliated broker-dealers and banks. The Company’s Operations and Information Technology departments provide or oversee the process and technology platform required to support its asset management business. Support activities include transfer agency, mutual fund accounting and administration, transaction processing and certain fiduciary services on behalf of institutional, intermediary and high net worth clients.
Research
The Company’s research department (Research) coordinates globally across all of the Company’s businesses. Research consists of economists, strategists and industry analysts who engage in equity and fixed income research activities and produce reports and studies on the United States and global economy, financial markets, portfolio strategy, technical market analyses, individual companies and industry developments. Research examines global trends covering numerous industries and individual companies, which are located outside the United States; provides analysis and forecasts relating to economic and monetary developments that affect matters such as interest rates, foreign currencies, securities, derivatives and economic trends; and provides analytical support and publishes reports on asset-backed securities and the markets in which such securities are traded and data are disseminated to investors through third-party distributors, Internet sites, such as Client Link and the Company’s sales forces.
The combined company shortened its name to Morgan Stanley Dean Witter & Co. (MSDW) in 1998 and worked to settle into its new organization. To strengthen its core operations of securities, asset management, and credit transaction services, the company began to divest itself of noncore businesses. MSDW sold its global custody businesses, namely Morgan Stanley Trust Company and Morgan Stanley Bank Luxembourg, S.A., to Chase Manhattan Corporation. The company also sold its Correspondent Clearing operations to NationsBanc Montgomery Securities LLC. Other divestments included MSDW's Prime Option MasterCard business, which it ran with NationsBank of Delaware, N.A.; its 73 percent stake in subsidiary SPS Transaction Services, Inc.; and some credit card receivables tied to its discontinued BRAVO Card.
Although the late 1990s were volatile years for financial markets globally, MSDW performed well and began to put to rest the doubts of industry skeptics. Total revenues for fiscal 1998, which ended November 30, were $31.13 billion, compared with fiscal 1997 sales of $27.13 billion. Profits reached a record $3.3 billion, a 27 percent jump over 1997 earnings. In addition, despite continued weak economic conditions in Europe and Asia, MSDW worked to strengthen overseas operations. In 1998 the company increased its staff in Europe by 20 percent and its staff in Asia by ten percent. In early 1999 MSDW acquired AB Asesores, the largest financial services company in Spain, and also partnered with National Bank of Kuwait SAK to offer asset management services. The company also extended its global reach to India, where it formed an alliance with JM Financial to create JM Morgan Stanley. Also in 1999 MSDW opened an investment banking branch in Argentina to better serve Latin American interests and formed an alliance with Sanwa Bank to offer mutual fund and investment products to Japanese clients.
MSDW's credit card operations continued to perform strongly, and in fiscal 1998 net income from the credit card division rose 47 percent to reach $688 million. The company launched the Discover Platinum Card in late 1998 and introduced its first credit card overseas, in the United Kingdom, in 1999. Also in 1999 more than 5.4 million new credit card accounts were established, the largest increase in one year since 1987. MSDW added to its online offerings in the late 1990s as well, launching ichoice, an online service that offered trading capabilities and broker advice, and changing the name of Discover Brokerage Direct to Morgan Stanley Dean Witter Online.
After only a few years in its new incarnation as MSDW, the company seemed to have adjusted to its new environment. MSDW reported net revenues of $22.01 billion for fiscal 1999, an increase of 34 percent over fiscal 1998. Assets under management rose from $376 billion in 1998 to $425 billion. The company's securities business, which accounted for 74 percent of total net revenues, reported record net income of $3.67 billion, a rise of 64 percent from fiscal 1998. The asset management division, which contributed ten percent of total revenues, also performed strongly, reporting net income of $455 million, an annual increase of 83 percent. Credit services enjoyed a 19 percent increase in net income over fiscal 1998, reaching a record $662 million. The global financial services leader planned to continue growing its international operations and strengthening domestic businesses in the new century, determined to live up to its goal to be 'a stable force in a turbulent world.'
Principal Subsidiaries: Morgan Stanley Dean Witter Online; NOVUS Financial Corporation; NOVUS Services, Inc.; Morgan Stanley Dean Witter Advisors Inc.; Morgan Stanley Dean Witter Insurance & Annuities; Morgan Stanley Dean Witter Investment Consulting Services; Morgan Stanley Dean Witter Managed Futures; Morgan Stanley Dean Witter Trust FSB; Morgan Stanley Dean Witter Unit Trust; Van Kampen Investments Inc.; Miller Anderson & Sherrerd, LLP; Morgan Stanley Asset Management Inc.
Principal Competitors: The Goldman Sachs Group, Inc.; Merrill Lynch & Co., Inc.; Salomon Smith Barney Holdings Inc.
OVERALL
Beta: 1.32
Market Cap (Mil.): $39,376.44
Shares Outstanding (Mil.): 1,548.66
Annual Dividend: 0.20
Yield (%): 0.79
FINANCIALS
MS.N Industry Sector
P/E (TTM): 14.50 270.23 25.46
EPS (TTM): 261.61 -- --
ROI: 0.76 0.78 4.79
ROE: 6.04 1.72 9.51
Statistics:
Public Company
Incorporated: 1924 as Dean Witter & Company
Employees: 52,927
Sales: $36.04 billion (1999)
Stock Exchanges: New York
Ticker Symbol: MWD
NAIC: 52311 Investment Banking and Securities Dealing; 52312 Securities Brokerage; 52221 Credit Card Issuing
Key Dates:
1924: Dean Witter establishes brokerage firm Dean Witter & Co. in San Francisco.
1929: Company purchases a seat on the New York Stock Exchange.
1972: Dean Witter goes public.
1978: Merges with securities brokerage firm Reynolds & Co. in the largest merger of its kind. Company is renamed Dean Witter Reynolds.
1981: Sears, Roebuck & Co. acquires Dean Witter Reynolds.
1986: Dean Witter Reynolds launches the Discover Card.
1993: Sears spins off Dean Witter and Discover into an independent, publicly traded company named Dean Witter, Discover & Co.
1997: Dean Witter and investment banking firm Morgan Stanley Group, Inc. merge to form Morgan Stanley, Dean Witter, Discover & Co.
1998: Company adopts the name Morgan Stanley Dean Witter & Co.
Name Age Since Current Position
Mack, John 66 2009 Executive Chairman of the Board
Gorman, James 52 2010 President, Chief Executive Officer, Director
Porat, Ruth 53 2010 Chief Financial Officer, Executive Vice President
Rosenthal, James 57 2011 Chief Operating Officer
deRegt, Kenneth 55 2011 Executive Vice President, Global Head of Fixed Income Sales and Trading
Kelleher, Colm 53 2010 Executive Vice President, Co-President - Institutional Securities
Taubman, Paul 50 2010 Executive Vice President, Co-President - Institutional Securities
Fleming, Gregory 48 2011 Executive Vice President, President of Asset Management and Global Wealth Management
Hotsuki, Keishi 48 2011 Interim Chief Risk Officer
Barron, Francis 59 2010 Chief Legal Officer
Kidder, C. Robert 66 Lead Independent Director
Hirano, Nobuyuki 59 2009 Director
Tyson, Laura 63 1997 Independent Director
Davies, Howard 60 2004 Independent Director
Bostock, Roy 70 2005 Independent Director
Sexton, O. Griffith 67 2005 Independent Director
Bowles, Erskine 65 2005 Independent Director
Nicolaisen, Donald 66 2006 Independent Director
Olayan, Hutham 57 2006 Independent Director
Hance, James 66 2009 Independent Director
Owens, James 65 2011 Independent Director
Address:
1585 Broadway
New York, New York 10036
U.S.A.
The corporation, formed by J.P. Morgan & Co. employees Henry S. Morgan (grandson of J.P. Morgan), Harold Stanley and others, came into existence on September 16, 1935. In its first year the company operated with a 24% market share (US$1.1 billion) in public offerings and private placements. The main areas of business for the firm today are Global Wealth Management, Institutional Securities and Investment Management.
The company found itself in the midst of a management crisis in the late 1990s that resulted in a loss of a number of the firm's staff and ultimately saw the firing of its then CEO Philip Purcell in 2005.
Morgan Stanley, incorporated in 1981, is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to a group of clients and customers, including corporations, governments, financial institutions and individuals. The Company is a financial holding company. The Company is a global financial services firm. The Company operates in three segments: Institutional Securities, Global Wealth Management Group and Asset Management. Institutional Securities provides capital raising; financial advisory services, including advice on mergers and acquisitions, restructurings, real estate and project finance; corporate lending; sales, trading, financing and market-making activities in equity and fixed income securities and related products, including foreign exchange and commodities, and investment activities. Global Wealth Management Group, which includes the Company’s 51% interest in Morgan Stanley Smith Barney Holdings LLC (MSSB), provides brokerage and investment advisory services to individual investors and small-to-medium sized businesses and institutions covering various investment alternatives; financial and wealth planning services; annuity and other insurance products; credit and other lending products; cash management services; retirement services; and trust and fiduciary services and engages in fixed income principal trading, which facilitates clients’ trading or investments in such securities. Asset Management provides a range of investment strategies that span the risk/return spectrum across geographies, asset classes and public and private markets to a range of clients across the institutional and intermediary channels, as well as high net worth clients. On June 1, 2010, the Company sold its retail asset management business, including Van Kampen Investments, Inc., to Invesco Ltd. During the year ended December 31, 2010, the Company completed the disposal of CityMortgage Bank (CMB), a Moscow-based mortgage bank.
Institutional Securities
The Company provides financial advisory and capital-raising services to a range of corporate and other institutional clients globally, through wholly owned subsidiaries that include Morgan Stanley & Co. Incorporated (MS&Co.), Morgan Stanley & Co. International plc and Morgan Stanley Asia Limited, and certain joint venture entities that include Morgan Stanley MUFG Securities Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. These entities also conduct sales and trading activities globally, as principal and agent, and provide related financing services on behalf of institutional investors. The Company manages and participates in public offerings and private placements of debt, equity and other securities globally. The Company is an underwriter of common stock, preferred stock and other equity-related securities, including convertible securities and American depositary receipts (ADRs). The Company is also a underwriter of fixed income securities, including investment grade debt, non-investment grade instruments, mortgage-related and other asset-backed securities, tax-exempt securities and commercial paper and other short-term securities. The Company provides corporate and other institutional clients globally with advisory services on key strategic matters, such as mergers and acquisitions, divestitures, joint ventures, corporate restructurings, recapitalizations, spin-offs, exchange offers and leveraged buyouts and takeover defenses, as well as shareholder relations. The Company also provides advice concerning rights offerings, dividend policy, valuations, foreign exchange exposure, financial risk management strategies and financial planning. In addition, the Company furnishes advice and services regarding project financings and provides advisory services in connection with the purchase, sale, leasing and financing of real estate.
The Company provides loans or lending commitments, including bridge financing, to selected corporate clients through its subsidiaries, including Morgan Stanley Bank, N.A (MSBNA). The Company conducts sales, trading, financing and market-making activities on securities and futures exchanges and in over-the-counter (OTC) markets globally. The Company’s Institutional Securities sales and trading activities include equity trading; interest rates, credit and currencies; commodities; clients and services, and investments. The Company trades, invests and makes markets in fixed income securities and related products globally, including, among other products, investment and non-investment grade corporate debt, distressed debt, bank loans, the United States and other sovereign securities, emerging market bonds and loans, convertible bonds, collateralized debt obligations, credit, currency, interest rate and other fixed income-linked notes, securities issued by structured investment vehicles, mortgage-related and other asset-backed securities and real estate-loan products, municipal securities, preferred stock and commercial paper, money-market, and other short-term securities.
The Company is a dealer of the United States federal government securities and a member of the selling groups that distribute various the United States agency and other debt securities. The Company is also a dealer or market-maker of government securities in European, Asian and emerging market countries. The Company trades, invests and makes markets globally in listed futures and over-the-counter (OTC) swaps, forwards, options and other derivatives referencing, among other things, interest rates, currencies, investment grade and non-investment grade corporate credits, loans, bonds, the United States and other sovereign securities, emerging market bonds and loans, credit indexes, asset-backed security indexes, property indexes, mortgage-related and other asset-backed securities and real estate loan products. The Company trades, invests and makes markets in foreign currencies, such as the British pound, Canadian dollar, euro, Japanese yen and Swiss franc, as well as in emerging markets currencies. The Company trades these currencies on a principal basis in the spot, forward, option and futures markets. The Company also provides financing to customers for commercial and residential real estate loan products and other securitizable asset classes. In addition, the Company engages in principal securities lending with clients, institutional lenders and other broker-dealers.
The Company structures debt securities, derivatives and other instruments with risk/return factors designed to suit client objectives, including using repackaged asset and other structured vehicles through, which clients can restructure asset portfolios to provide liquidity or reconfigure risk profiles. The Company invests and makes markets in the spot, forward, physical derivatives and futures markets in several commodities, including metals, agricultural products, crude oil, oil products, natural gas, electric power, emission credits, coal, freight, liquefied natural gas and related products and indices. The Company is a market-maker in exchange-traded options and futures and OTC options and swaps on commodities, and offers counterparties hedging programs relating to production, consumption, reserve/inventory management and structured transactions, including energy-contract securitizations and monetization. The Company is an electricity power marketer in the United States and owns electricity-generating facilities in the United States and Europe. The Company owns TransMontaigne Inc. and its subsidiaries, a group of companies operating in the refined petroleum products marketing and distribution business, and owns a minority interest in Heidmar Holdings LLC, which owns a group of companies that provide international marine transportation and the United States marine logistics services. The Company provides financing services, including prime brokerage, which offers, among other services, consolidated clearance, settlement, custody, financing and portfolio reporting services to clients trading multiple asset classes. In addition, the Company’s institutional distribution and sales activities are overseen and coordinated through clients and services.
Global Wealth Management Group
The Company’s Global Wealth Management Group, which included the Company’s 51% interest in MSSB, provides financial services to clients. Global Wealth Management Group professionals serve individual investors and small-to-medium sized businesses and institutions. Global representatives are located in branches across the United States and provide solutions designed to accommodate individual investment objectives, risk tolerance and liquidity needs. Outside the United States, Global Wealth Management Group offers financial services to clients in Europe, the Middle East, Asia, Australia and Latin America. The Company’s Global Wealth Management Group provides clients with a range of financial solutions, including products and services from the Company, Citigroup Inc. (Citi) and third-party providers, such as insurance companies and mutual fund families. Global Wealth Management Group provides brokerage and investment advisory services covering various investments, including equities, options, futures, foreign currencies, precious metals, fixed income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts and mutual fund asset allocation programs. Global Wealth Management Group also engages in fixed income principal trading, which facilitates clients’ trading or investments in such securities. In addition, Global Wealth Management Group offers education savings programs, financial and wealth planning services, and annuity and other insurance products.
Global Wealth Management Group offers the Company’s clients access to several cash management services through various affiliates, including deposits, debit cards, electronic bill payments and check writing, as well as lending products, including securities based lending, mortgage loans and home equity lines of credit. Global Wealth Management Group also provides trust and fiduciary services, offers access to cash management and commercial credit solutions to qualified small- and medium-sized businesses in the United States, and provides individual and corporate retirement solutions, including individual retirement accounts and 401(k) plans and the United Statesand global stock plan services to corporate executives and businesses. Global Wealth Management Group provides clients a range of ways to establish a relationship and conduct business, including brokerage accounts with transaction-based pricing and investment advisory accounts with asset-based fee pricing.
Asset Management
The Company’s Asset Management business segment is a global investment management organization and offers clients a range of equity, fixed income and alternative investments and merchant banking strategies. Portfolio managers located in the United States, Europe and Asia manage investment products ranging from money market funds to equity and fixed income strategies, alternative investment and merchant banking products in developed and emerging markets across geographies and market cap ranges. The Company offers a range of alternative investment, real estate investing and merchant banking products for institutional investors and high net worth individuals. The Company’s alternative investments platform includes hedge funds, funds of hedge funds, funds of private equity funds and portable alpha strategies. The Company’s alternative investments platform also includes minority stakes in Lansdowne Partners, Avenue Capital Group and Traxis Partners LP.
The Company’s real estate and merchant banking businesses include its real estate investing business, private equity funds, corporate mezzanine debt investing group and infrastructure investing group. The Company acts as general partner of, and investment adviser to, its alternative investment, real estate and merchant banking funds. The Company provides investment management strategies and products to institutional investors global, including corporations, pension plans, endowments, foundations, sovereign wealth funds, insurance companies and banks through a range of pooled vehicles and separate accounts. In addition, the Company provides sub-advisory services to various unaffiliated financial institutions and intermediaries.
The Company offers open-end and alternative investment funds and separately managed accounts to individual investors through affiliated and unaffiliated broker-dealers, banks, insurance companies, financial planners and other intermediaries. Closed-end funds managed by the Company are available to individual investors through affiliated and unaffiliated broker-dealers. The Company also distributes mutual funds through numerous retirement plan platforms. Internationally, the Company distributes traditional investment products to individuals outside the United States through distributors and distributes alternative investment products through affiliated broker-dealers and banks. The Company’s Operations and Information Technology departments provide or oversee the process and technology platform required to support its asset management business. Support activities include transfer agency, mutual fund accounting and administration, transaction processing and certain fiduciary services on behalf of institutional, intermediary and high net worth clients.
Research
The Company’s research department (Research) coordinates globally across all of the Company’s businesses. Research consists of economists, strategists and industry analysts who engage in equity and fixed income research activities and produce reports and studies on the United States and global economy, financial markets, portfolio strategy, technical market analyses, individual companies and industry developments. Research examines global trends covering numerous industries and individual companies, which are located outside the United States; provides analysis and forecasts relating to economic and monetary developments that affect matters such as interest rates, foreign currencies, securities, derivatives and economic trends; and provides analytical support and publishes reports on asset-backed securities and the markets in which such securities are traded and data are disseminated to investors through third-party distributors, Internet sites, such as Client Link and the Company’s sales forces.
The combined company shortened its name to Morgan Stanley Dean Witter & Co. (MSDW) in 1998 and worked to settle into its new organization. To strengthen its core operations of securities, asset management, and credit transaction services, the company began to divest itself of noncore businesses. MSDW sold its global custody businesses, namely Morgan Stanley Trust Company and Morgan Stanley Bank Luxembourg, S.A., to Chase Manhattan Corporation. The company also sold its Correspondent Clearing operations to NationsBanc Montgomery Securities LLC. Other divestments included MSDW's Prime Option MasterCard business, which it ran with NationsBank of Delaware, N.A.; its 73 percent stake in subsidiary SPS Transaction Services, Inc.; and some credit card receivables tied to its discontinued BRAVO Card.
Although the late 1990s were volatile years for financial markets globally, MSDW performed well and began to put to rest the doubts of industry skeptics. Total revenues for fiscal 1998, which ended November 30, were $31.13 billion, compared with fiscal 1997 sales of $27.13 billion. Profits reached a record $3.3 billion, a 27 percent jump over 1997 earnings. In addition, despite continued weak economic conditions in Europe and Asia, MSDW worked to strengthen overseas operations. In 1998 the company increased its staff in Europe by 20 percent and its staff in Asia by ten percent. In early 1999 MSDW acquired AB Asesores, the largest financial services company in Spain, and also partnered with National Bank of Kuwait SAK to offer asset management services. The company also extended its global reach to India, where it formed an alliance with JM Financial to create JM Morgan Stanley. Also in 1999 MSDW opened an investment banking branch in Argentina to better serve Latin American interests and formed an alliance with Sanwa Bank to offer mutual fund and investment products to Japanese clients.
MSDW's credit card operations continued to perform strongly, and in fiscal 1998 net income from the credit card division rose 47 percent to reach $688 million. The company launched the Discover Platinum Card in late 1998 and introduced its first credit card overseas, in the United Kingdom, in 1999. Also in 1999 more than 5.4 million new credit card accounts were established, the largest increase in one year since 1987. MSDW added to its online offerings in the late 1990s as well, launching ichoice, an online service that offered trading capabilities and broker advice, and changing the name of Discover Brokerage Direct to Morgan Stanley Dean Witter Online.
After only a few years in its new incarnation as MSDW, the company seemed to have adjusted to its new environment. MSDW reported net revenues of $22.01 billion for fiscal 1999, an increase of 34 percent over fiscal 1998. Assets under management rose from $376 billion in 1998 to $425 billion. The company's securities business, which accounted for 74 percent of total net revenues, reported record net income of $3.67 billion, a rise of 64 percent from fiscal 1998. The asset management division, which contributed ten percent of total revenues, also performed strongly, reporting net income of $455 million, an annual increase of 83 percent. Credit services enjoyed a 19 percent increase in net income over fiscal 1998, reaching a record $662 million. The global financial services leader planned to continue growing its international operations and strengthening domestic businesses in the new century, determined to live up to its goal to be 'a stable force in a turbulent world.'
Principal Subsidiaries: Morgan Stanley Dean Witter Online; NOVUS Financial Corporation; NOVUS Services, Inc.; Morgan Stanley Dean Witter Advisors Inc.; Morgan Stanley Dean Witter Insurance & Annuities; Morgan Stanley Dean Witter Investment Consulting Services; Morgan Stanley Dean Witter Managed Futures; Morgan Stanley Dean Witter Trust FSB; Morgan Stanley Dean Witter Unit Trust; Van Kampen Investments Inc.; Miller Anderson & Sherrerd, LLP; Morgan Stanley Asset Management Inc.
Principal Competitors: The Goldman Sachs Group, Inc.; Merrill Lynch & Co., Inc.; Salomon Smith Barney Holdings Inc.
OVERALL
Beta: 1.32
Market Cap (Mil.): $39,376.44
Shares Outstanding (Mil.): 1,548.66
Annual Dividend: 0.20
Yield (%): 0.79
FINANCIALS
MS.N Industry Sector
P/E (TTM): 14.50 270.23 25.46
EPS (TTM): 261.61 -- --
ROI: 0.76 0.78 4.79
ROE: 6.04 1.72 9.51
Statistics:
Public Company
Incorporated: 1924 as Dean Witter & Company
Employees: 52,927
Sales: $36.04 billion (1999)
Stock Exchanges: New York
Ticker Symbol: MWD
NAIC: 52311 Investment Banking and Securities Dealing; 52312 Securities Brokerage; 52221 Credit Card Issuing
Key Dates:
1924: Dean Witter establishes brokerage firm Dean Witter & Co. in San Francisco.
1929: Company purchases a seat on the New York Stock Exchange.
1972: Dean Witter goes public.
1978: Merges with securities brokerage firm Reynolds & Co. in the largest merger of its kind. Company is renamed Dean Witter Reynolds.
1981: Sears, Roebuck & Co. acquires Dean Witter Reynolds.
1986: Dean Witter Reynolds launches the Discover Card.
1993: Sears spins off Dean Witter and Discover into an independent, publicly traded company named Dean Witter, Discover & Co.
1997: Dean Witter and investment banking firm Morgan Stanley Group, Inc. merge to form Morgan Stanley, Dean Witter, Discover & Co.
1998: Company adopts the name Morgan Stanley Dean Witter & Co.
Name Age Since Current Position
Mack, John 66 2009 Executive Chairman of the Board
Gorman, James 52 2010 President, Chief Executive Officer, Director
Porat, Ruth 53 2010 Chief Financial Officer, Executive Vice President
Rosenthal, James 57 2011 Chief Operating Officer
deRegt, Kenneth 55 2011 Executive Vice President, Global Head of Fixed Income Sales and Trading
Kelleher, Colm 53 2010 Executive Vice President, Co-President - Institutional Securities
Taubman, Paul 50 2010 Executive Vice President, Co-President - Institutional Securities
Fleming, Gregory 48 2011 Executive Vice President, President of Asset Management and Global Wealth Management
Hotsuki, Keishi 48 2011 Interim Chief Risk Officer
Barron, Francis 59 2010 Chief Legal Officer
Kidder, C. Robert 66 Lead Independent Director
Hirano, Nobuyuki 59 2009 Director
Tyson, Laura 63 1997 Independent Director
Davies, Howard 60 2004 Independent Director
Bostock, Roy 70 2005 Independent Director
Sexton, O. Griffith 67 2005 Independent Director
Bowles, Erskine 65 2005 Independent Director
Nicolaisen, Donald 66 2006 Independent Director
Olayan, Hutham 57 2006 Independent Director
Hance, James 66 2009 Independent Director
Owens, James 65 2011 Independent Director
Address:
1585 Broadway
New York, New York 10036
U.S.A.