Managing Multiple Products & Multiple Platforms
Mitchell M. Merin
President & Chief Operating Officer Morgan Stanley Investment Management
Forces Of Change
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Forces Of Change
Forces
Technology
Asset Management Industry
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Forces Of Change
Forces
Technology
Changing Customers
Asset Management Industry
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Forces Of Change
Forces
Technology
Changing Customers
U.S. Market Maturation
Asset Management Industry
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Forces Of Change
Forces
Technology
Changing Customers
U.S. Market Maturation
Asset Management Industry
Increased Competition
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Forces Of Change
Forces Changes
Power Shifting to Distributors Technology Losing Control of the Customer
Greater Mobility of Assets Changing Customers Ubiquity of Products & Services
U.S. Market Maturation
Asset Management Industry
Performance Transparency
Price Transparency Commodization of the Mutual Fund
Increased Competition
Slower Organic Growth Increased Pressure On Margins
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Critical Success Attributes
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Critical Success Attributes
Customer Focus / Segmentation
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Critical Success Attributes
Customer Focus / Segmentation
Quality Investment Manufacturing / Superior Performance
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Critical Success Attributes
Customer Focus / Segmentation
Quality Investment Manufacturing / Superior Performance
Multi-Tiered Distribution
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Critical Success Attributes
Customer Focus / Segmentation
Quality Investment Manufacturing / Superior Performance
Multi-Tiered Distribution
Strong Brand Identity
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Critical Success Attributes
Customer Focus / Segmentation
Quality Investment Manufacturing / Superior Performance
Multi-Tiered Distribution
Strong Brand Identity
Economies of Scale
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Today’s Asset Management Industry
Three Tiers Of Competitors
Large Institutions
Mid-Tier Firms Small Boutiques
THE COMPETITIVE LANDSCAPE
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Tomorrow’s Asset Management Industry
More And More Bifurcated
Large Institutions
Mid-Tier Firms Small Boutiques
R I P?
THE COMPETITIVE LANDSCAPE
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our Business Model
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
A Quick History
Morgan Stanley Asset Management founded (1975) Dean Witter acquires InterCapital (1977)
Morgan Stanley acquires MAS (1996)
Morgan Stanley acquires Van Kampen (1996)
Morgan Stanley merges with Dean Witter (1997)
MSDW Asset Management formed (1999) MSIM formed (2000)
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our Old Organization
MORGAN STANLEY DEAN WITTER ASSET MANAGEMENT
Investments Investments Investments Investments
Sales & Marketing
Sales & Marketing
Sales & Marketing
Sales & Marketing
Operations
Operations
Operations
Operations
Technology
Technology
Technology
Technology
MAS
MILLER ANDERSON & SHERRERD, LLP
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our Old Branding Strategy
Client Segment
Proprietary Retail
Organization
MSDW Advisors
Brand
MSDW Family of Funds
Proprietary Institutional
MSDW Investment Mgmt. Miller Anderson & Sherrerd
MSDW Institutional Funds MAS Funds
Non-Proprietary Retail
Van Kampen Investments
Van Kampen Funds
Non-Proprietary Institutional
MSDW Investment Mgmt. Miller Anderson & Sherrerd Van Kampen Mgmt. MSDW Investment Mgmt.
Universal Funds MAS Funds Van Kampen Institutional Morgan Stanley Dean Witter
Non-U.S.
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our Old Distribution Approach
High Net Worth
Broker-Dealers Consultants
Full-Service
Investment Advisors
Corporations
Self-Service
Banks
Public Plans
Proprietary Retail
Non-Proprietary Retail
Institutional
MAS
MILLER ANDERSON & SHERRERD, LLP
MORGAN STANLEY DEAN WITTER ASSET MANAGEMENT
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
We Were Not Harnessing Our Collective Power
To Meet The Divergent Needs Of Our Customers
C O S T
Call Centers eAdvice
High Net Worth Traditional Broker
SERVICE
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our Old Organization
MORGAN STANLEY DEAN WITTER ASSET MANAGEMENT
Investments Investments Investments Investments
Sales & Marketing
Sales & Marketing
Sales & Marketing
Sales & Marketing
Operations
Operations
Operations
Operations
Technology
Technology
Technology
Technology
MAS
MILLER ANDERSON & SHERRERD, LLP
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
We Functionally Realigned
MORGAN STANLEY DEAN WITTER ASSET MANAGEMENT
Investments Technology Operations
Sales & Marketing
Investments
Investments
Investments
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Technology
Operations
Sales & Marketing
Technology
Operations
Sales & Marketing
Technology
Operations
Sales & Marketing
MAS
MILLER ANDERSON & SHERRERD, LLP
Our New Organization
Investments
Sales & Marketing Operations Technology
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our New Organization = The Keys To Success
The Critical Success Attributes
Customer Focus / Segmentation
Investments
Sales & Marketing
Operations
Quality Investment Manufacturing / Superior Performance
Multi-Tiered Distribution
Strong Brand Identity
Technology
Economies of Scale
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
The Power of All Products & Services Under One Roof
Traditional Investment Products Mutual Funds Separately Managed Accounts
Alternative Investments Hedge Funds Fund-of-Funds
Retirement Services Defined Contribution Defined Benefit
Advice
Financial Planning Asset Allocation Services
Other
Transfer Agency Section 529 Plans Donor-Advised Fund
Consulting
Non-U.S. Funds Mutual Fund Wrap Programs
Variable Annuities
Private Equity Managed Futures
Real Estate
Trust Services Estate Planning
Life Insurance
Unit Investment Trusts
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our New Branding Strategy
Client Segment
Proprietary Retail
Organization
Brand
Morgan Stanley Funds
Proprietary Institutional
Morgan Stanley Institutional Funds
Non-Proprietary Retail
Van Kampen Investments
Non-Proprietary Institutional
TBD
Non-U.S.
Morgan Stanley
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our New Distribution Approach
Non-Proprietary Retail
Proprietary Retail
High Net Worth
Broker-Dealers
Institutional
Consultants
Investment Advisors
Full-Service
Corporations
Banks
Self-Service
Public Plans
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our New Distribution Approach
Non-Proprietary Retail
Proprietary Retail
High Net Worth
Broker-Dealers
Institutional
Consultants
Investment Advisors
Full-Service
Corporations
Banks
Self-Service
Public Plans
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Our New Organization = The Keys To Success
The Critical Success Attributes
Customer Focus / Segmentation
Investments
Sales & Marketing
Operations
Quality Investment Manufacturing / Superior Performance
Multi-Tiered Distribution
Strong Brand Identity
Technology
Economies of Scale
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Superior Performance
65 Funds Rated 4- or 5-Stars by Morningstar
Source: Morningstar Principia, May 2001
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Strong Global Reach
19 Locations & 4,000 Employees World-Wide
Chicago Oakbrook Terrace
Mumbai New York
Boston
Tokyo
London
Hong Kong Singapore
Cedar Rapids
Jersey City Amsterdam
Kansas City
Milan Houston West Conshohocken
San Francisco
Sydney
Melbourne
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Strong Brand Identity
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Strong Brand Identity
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Economies of Scale
Rationalizing Expenses Across The Business
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Economies of Scale
Rationalizing Expenses Across The Business
Driving-Home Our #4 Commission Ranking
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Economies of Scale
Rationalizing Expenses Across The Business
Driving-Home Our #4 Commission Ranking
Vendor Relationships
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Economies of Scale
Rationalizing Expenses Across The Business
Driving-Home Our #4 Commission Ranking
Vendor Relationships
Technology
NOTICE: This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, nonpublic information. The presentation has been prepared solely for information purposes, is not a solicitation of an offer to buy or sell any security or instrument and has not been updated since it was o riginally presented June 26, 2001.
Managing Multiple Products & Multiple Platforms
Mitchell M. Merin
President & Chief Operating Officer Morgan Stanley Investment Management