Morgan Stanley 1998 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 1998 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.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

MORGAN STANLEY DEAN WITTER *1998 ANNUAL REPORT
*TEN *
services, including 45 mutual funds ranked 4- or 5-Star by Morningstar.This past
year, we brought our diverse asset management activities under a single organiza-
tional roof to create an even stronger presence in the marketplace.
There also is great diversity in our securities business. In individual securities, we
achieved stable growth in client assets despite volatile markets largely because our
11,238 financial advisors provided a steadying influence and kept clients focused on
long-term objectives. In institutional equities, foreign exchange and commodities,
we had strong revenues in part because we do not take major proprietary market
positions, but focus on assisting customers with a wide array of products, hedging
solutions and transaction execution.
Our record earnings were a tribute to our strong culture of managing risk. Like
most firms, we review market risk exposure in our institutional securities business
using both quantitative and qualitative approaches. But we believe our success in
managing risk comes down to the experience and discipline of our people.
The events of 1998 forced
people to rethink the concept of globalization.The information technology that
makes it possible for capital to flow freely and for investors to seek the best returns,
regardless of national borders, also makes it possible for capital to exit a country just
as readily.This is what happened in Asia, and, with the links between economies
worldwide, it created uncertainty in other parts of the world.The operative word
became “contagion,” and suddenly talk turned from the benefits of globalization to
fears of worldwide recession.
OUR COMMITMENT TO GLOBAL MARKETS IS UNDIMINISHED
30
25
20
15
10
5
0
figure 5
HISTOGRAM OF DAILY INSTITUTIONAL TRADING REVENUE
(in millions of U.S. dollars)
<-15 -10 -5 0 5 1015202530 35 40 45 >50
frequency
(loss) (gain)