Morgan Stanley 2015 Annual Report Download - page 70

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Non-interest Expenses.
Non-interest expenses of $2,048 million were essentially unchanged from 2013.
• Compensation and benefits expenses increased due to the 2014 compensation actions and increases in salaries
partially offset by a decrease in the fair value of deferred compensation plan referenced investments (see also
“Supplemental Financial Information and Disclosures—Discretionary Incentive Compensation” herein).
• Non-compensation expenses decreased primarily due to an impairment expense related to certain intangible assets
(management contracts) associated with alternative investments funds in 2013 and the result of lower consumption
taxes in the European Union.
Other Items.
Nonredeemable Noncontrolling Interests.
Nonredeemable noncontrolling interests are primarily related to the consolidation of certain real estate funds sponsored by
the Company. Investment gains (losses) associated with nonredeemable noncontrolling interests in these consolidated funds
were $14 million, $104 million and $151 million in 2015, 2014 and 2013, respectively. Nonredeemable noncontrolling
interests decreased in 2015 primarily due to the deconsolidation of certain legal entities associated with a real estate fund
sponsored by the Company in the second quarter 2015.
Statistical Data.
Assets Under Management or Supervision and Average Fee Rate by Asset Class.
At
December 31,
2014
Inflows
(1) Outflows Distributions
Market
Impact
Foreign
Currency
Impact
At
December 31,
2015
Average for the
Year Ended
December 31,
2015
AUM Fee Rate
(dollars in billions) (in bps)
Traditional Asset Management:
Equity ................ $ 141 $ 33 $ (44) $ — $ (2) $ (2) $ 126 $ 136 70
Fixed income .......... 65 21 (23) — (1) (2) 60 63 32
Liquidity .............. 128 1,259 (1,238) — — — 149 136 9
Alternatives(2) ......... 36 4 (3) (1) — — 36 36 61
Managed Futures ....... 3 — — — — — 3 3 111
Total Traditional Asset
Management .............. 373 1,317 (1,308) (1) (3) (4) 374 374 41
Merchant Banking and Real
Estate Investing(2) ......... 30 6 (1) (5) 2 — 32 31 106
Total assets under management
or supervision ............ $ 403 $ 1,323 $ (1,309) $ (6) $ (1) $ (4) $ 406 $ 405 46
Shares of minority stake
assets ................... 787
64