Morgan Stanley 2003 Annual Report Download - page 13
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Please find page 13 of the 2003 Morgan Stanley annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.5difculttoforecast.Asaresult,wearenotanticipatingsignicantportfolio
growththroughoutmostof2004.
InvestmentManagementrevenuesandprotsweredown8%and22%,
respectively.Costreductionsof2%didnotoffsetthereductioninreve-
nues.Thedeclineinrevenuesreectstheearlierdeclineinmarketvalues
globallyaswellasnetoutowsofcustomerassets,bothresultinginfewer
assetsundermanagement.Wewerenotsatisedwithourmarketshareof
newassets.Inparticular,investmentperformanceinourinstitutionalxed
incomeareaandnegativepublicitysurroundingsalesofafliatedfunds
droveunderperformanceinattractingnewassets.Manystepsweretaken
toaddresstheseissues,andweexpecttoimproveourmarketshareofnew
assetsin2004.
Evenwithamorefavorableeconomicoutlook,nancialstrength
continuestobeakeyobjectivefortherm.Inthelast12months,we
haveimprovedourliquidityposition,loweredrelianceonshort-term
fundingandreducedourleverage.Wecontinuetobelievenancial
strength,representedinastrongbalancesheetandadiversiedsource
ofearnings,isacompetitiveadvantagefortherm.
Lookingatthemonthsahead,oursuccessincapturingclientwalletshare
willbethekeyfactorindrivingrelativenancialperformance.However,
giventheextraordinaryeffortandexpenseassociatedwithreducingourcost
structure,maintainingcostdisciplineisalmostasimportant.Aswastrue
in2003,thelegalandregulatoryenvironmentmakesitdifculttoforecast
expenselevels.
Ibelievethataswemoveforward,therewillbetwokeydriverstowealth
creationinnancialservices:Financialinstitutionswithreturnshigher
thanthecostofcapitalandhighgrowthinbookvaluewillcreatethemost
wealthforshareholdersoverthelongterm.In2003,witha16.5%return
onequityand13%growthinbookvaluepershare,Ibelievethecompany
madeaverysignicantcontributiontothewealthofitsowners.
MorganStanleyAnnualReport2003