Morgan Stanley 2010 Annual Report Download - page 12

these activities are undertaken through its own facilities, through memberships in various clearing and settlement
organizations, and through agreements with unaffiliated third parties. The Company and Citi provide certain
other services and systems to support the Global Wealth Management Group through transition services
agreements with MSSB.
Asset Management.
The Company’s Asset Management business segment is one of the largest global investment management
organizations of any full-service financial services firm and offers clients a diverse array of equity, fixed income
and alternative investments and merchant banking strategies. Portfolio managers located in the U.S., Europe and
Asia manage investment products ranging from money market funds to equity and fixed income strategies,
alternative investment and merchant banking products in developed and emerging markets across geographies
and market cap ranges.
The Company offers a range of alternative investment, real estate investing and merchant banking products for
institutional investors and high net worth individuals. The Company’s alternative investments platform includes
hedge funds, funds of hedge funds, funds of private equity funds and portable alpha strategies. The Company’s
alternative investments platform also includes minority stakes in Lansdowne Partners, Avenue Capital Group and
Traxis Partners LP. The Company’s real estate and merchant banking businesses include its real estate investing
business, private equity funds, corporate mezzanine debt investing group and infrastructure investing group. The
Company typically acts as general partner of, and investment adviser to, its alternative investment, real estate and
merchant banking funds and typically commits to invest a minority of the capital of such funds with subscribing
investors contributing the majority.
On June 1, 2010, as part of a restructuring of the Company’s Asset Management business segment, the Company
sold substantially all of its retail asset management business, including Van Kampen Investments, Inc., to
Invesco Ltd. This transaction allows the Company’s Asset Management business segment to focus on its
institutional and intermediary client base.
Institutional Investors.
The Company provides investment management strategies and products to institutional investors worldwide,
including corporations, pension plans, endowments, foundations, sovereign wealth funds, insurance companies
and banks through a broad range of pooled vehicles and separate accounts. Additionally, the Company provides
sub-advisory services to various unaffiliated financial institutions and intermediaries. A Global Sales and Client
Service team is engaged in business development and relationship management for consultants to help serve
institutional clients.
Intermediary Clients and Individual Investors.
The Company offers open-end and alternative investment funds and separately managed accounts to individual
investors through affiliated and unaffiliated broker-dealers, banks, insurance companies, financial planners and
other intermediaries. Closed-end funds managed by the Company are available to individual investors through
affiliated and unaffiliated broker-dealers. The Company also distributes mutual funds through numerous
retirement plan platforms. Internationally, the Company distributes traditional investment products to individuals
outside the U.S. through non-proprietary distributors and distributes alternative investment products through
affiliated broker-dealers and banks.
Operations and Information Technology.
The Company’s Operations and Information Technology departments provide or oversee the process and
technology platform required to support its asset management business. Support activities include transfer
agency, mutual fund accounting and administration, transaction processing and certain fiduciary services on
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