Reports
Morgan Stanley Sees Rich Pickings In Asia; Eyes Chinese Family Office Trend

The US firm, one of the world's largest wealth firms by assets, has spoken of its desire to manage more money out of Singapore and talked about the potential of family offices run by mainland Chinese clients.
Morgan
Stanley is reportedly boosting its services for high net
worth Singapore-based clients, concentrating on Chinese
entrepreneurs looking to build family offices in the
jurisdiction, a report says.
“The city is a key business hub for China entrepreneurs, as well
as a family office nexus,” Vincent Chui, who heads the bank’s
Asia wealth operations, was quoted by Bloomberg as
saying in an interview. Morgan Stanley hired Wee Yee Yeong to
head its Singapore wealth business this year, and plans to add
relationship managers there and in Hong Kong, he is quoted as
having said.
The report went on to note that Chinese HNW individuals are
trying to guard their money from mainland China’s efforts to make
it harder to park wealth offshore. Since the start of January,
the country has taken several steps to restrict such
outflows.
Clients tend to prefer Singapore as a base for family offices “a
little bit more” than Hong Kong, where the wealthy operate more
on an individual basis, Chui was quoted as saying by the news
service.
The push at HNW Chinese and other individuals in the city-state
is part of how Morgan Stanley tries to exploit how its investment
banking and corporate advisory services – such as help with IPOs
and trade sales – are often sought by individuals managing their
corporate wealth.
The Wall Street-listed firm late last week reported pret-tax
income at its wealth arm of $1.01 billion in the fourth quarter
of last year, down from $1.15 billion a year before; wealth
management net revenue stood at $4.144 billion in the last three
months of last year, down from $4.407 billion, according to a
statement. The firm said the results reflected the “difficult
environment, seasonality and certain compensation-related
items”.
Total client assets were $2.3 trillion and client assets in
fee-based accounts were $1.0 trillion at the end of the quarter.
Fee-based asset flows for the quarter were a positive $16.2
billion. Wealth management representatives of 15,694 produced
average annualised revenue per representative of $1.1 million in
the current quarter.