Morgan Stanley wealth adds assets, profit flat

* Morgan Stanley added $5 bln of client assets in Q3

* Q3 wealth management profit $281 mln, flat with year ago

* Unit added 32 advisers during third quarter

NEW YORK, Oct 20 (BestGrowthStock) – Morgan Stanley (MS.N: ) (Read more about the money market today. ) said it
added financial advisers and client assets in the third quarter
but profit and revenues remained flat in a tough trading
environment.

The wealth management division, which includes a majority
stake in the Morgan Stanley Smith Barney brokerage joint
venture, added $5 billion in client assets during the quarter.
This largely reverses the $5.5 billion in withdrawals the unit
suffered during the second quarter.

The unit now oversees $1.6 trillion of client assets, up 5
percent from $1.5 trillion a year earlier.

In its first comparable year-on-year results following the
formation of the joint venture in June 2009, the unit posted
pre-tax profit of $281 million, unchanged from a year earlier.

Net revenues of $3.1 billion were up 1 percent as higher
interest revenues were offset by a decline in commissions as
clients stayed out of the markets.

Morgan Stanley added a net 32 advisers during the quarter,
despite an aggressive recruiting campaign, and now has 18,119
advisers. Each adviser generated an average of $686,000 in
annual fees and commissions, up 4 percent from $662,000 a year
ago.

The unit also closed 14 branches during the quarter as it
works to consolidate Morgan Stanley and Smith Barney. It now
has 867 branches, down from 930 when the joint venture began.
(Reporting by Helen Kearney; editing by John Wallace)

Morgan Stanley wealth adds assets, profit flat