Friday, November 30, 2007

Strategy - Morgan Stanley - 2006 and before

December 2005

Asset Management Business

Morgan Stanley announced in December 2005 that Owen D. Thomas, 44, Acting President of Morgan Stanley Investment Management since September 2005, has been named President of the division. He will report to Zoe Cruz, Morgan Stanley's Acting President.

John J. Mack, Chairman and Chief Executive Officer of Morgan Stanley, said, "Morgan Stanley is firmly committed to the asset management business, and we have outlined a clear strategy to capitalize on the significant growth opportunities it offers."

Ms. Cruz said, "Since Owen became acting president of asset management in September, he has attracted key talent to the business from inside and outside the Firm, improved the internal partnership culture to better serve our clients, and increased accountability for results. We have seen strong support within the division for Owen's strategic thinking and his ability to implement decisions."

As interim head of investment management during the past three months, Mr. Thomas has initiated a number of changes that mark the beginning of an ongoing initiative to better capitalize on growth opportunities, including those in alternative investments and other new products, as well as growth opportunities outside the U.S. The changes he has made so far include creating a new organizational structure to improve accountability for results, speed decision-making and establish a dedicated alternative investments group. Mr. Thomas also has attracted new talent from inside and outside the Firm, seeded new investment products in alternatives and other areas, and moved functions such as product development closer to investors.

Mr. Thomas will be Chairman of Morgan Stanley Real Estate. In that role, Mr. Thomas will not be involved in the day-to-day management of the real estate business. He will be available to work with select clients and investors to the extent permitted by his primary role as President of Asset Management.

Morgan Stanley Investment Management

Morgan Stanley Investment Management, with $428 billion in assets under management and more than 400 investment professionals around the world, is one of the 20 largest businesses in the highly fragmented global investment management industry. The division, which serves both institutional and individual clients, contributed more than 12 percent of Morgan Stanley's profit before taxes in 2004, up from more than 8 percent in 2003.

The division has three distinct sets of clients:

--Institutional clients, including 401(k)/defined contribution plans, endowments, foundations, pension funds, corporations, governments, and high-net-worth individuals;

--Individual investors who own Morgan Stanley funds managed by Morgan Stanley Investment Advisors; and

--Investors who make investments through other brokerage firms, banks and financial planners via Van Kampen Investments, a wholly owned subsidiary.

As of August 31, 2005, assets under management or supervision included $227 billion in institutional assets and $201 billion in retail assets.

Morgan Stanley is a global financial services firm and a market leader in securities, investment management, and credit services. With more than 600 offices in 28 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.


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