Greg Fleming, who runs Morgan Stanley’s wealth management franchise and its investment management business, is planning to expand the firm’s $373-billion investment franchise known as Morgan Stanley Investment Management by making new acquisition.
A report in qz.com quoted him as saying, "If there was a business or a platform that would make sense for us, that would fit into our culture, that would add some bulk and some good portfolio management talent, we would look at doing that."
Fleming is planning to expand the firm’s investment management platform by a third over the next two years, to about $500 billion, and also hit returns of 20%, according to the publication.
The move comes as major banks are de-emphasizing trading amid new US regulations such as the Volcker Rule.
However, Fleming added that the acquisitions are not inevitable.
The move signal a shift in strategy of the firm as the bank suggested three years ago that it is neither considering acquisitions nor hiring new staff for wealth management division.