Morgan Stanley Loses $7.4 Billion in Advisory Assets to Wells Fargo
MS•Morgan Stanley has lost two private wealth teams managing a combined $7.4B in client assets to Wells Fargo Advisors within days. This shift underscores intensifying retention challenges for Morgan Stanley’s wealth division as rival Wells Fargo expands its national wealth team.
1. Teams Depart from Morgan Stanley
On last Friday and Wednesday, two Morgan Stanley advisory teams managing $5.9B and $1.5B in client assets respectively left to join Wells Fargo Advisors, marking a combined departure of $7.4B. Both teams will operate under new group names within Wells Fargo’s private wealth structure.
2. Competitive Pressure in Wealth Management
The departures reflect intensified competition for advisors as Wells Fargo consolidates its national wealth division, recently relocating its headquarters to West Palm Beach. Morgan Stanley now faces increased retention challenges as rival firms offer enhanced local support and compensation.
3. Impact on Morgan Stanley
Loss of $7.4B in managed assets may reduce fee-related revenues and highlights potential advisor attrition risks at Morgan Stanley. The firm’s ability to maintain its wealth platform scale and advisor satisfaction will be critical for sustaining asset growth momentum.
