Morgan Stanley 2014 Annual Report Download - page 81

Statistical Data (dollars in billions, except where noted).
2014 2013(1) 2012(1)
Annual revenues per representative (dollars in thousands)(2) ...................... $914 $863 $780
Client assets per representative (dollars in millions)(3) .......................... $126 $116 $104
Fee-based asset flows(4) .................................................. $58.8 $51.9 $26.9
At
December 31,
2014
At
December 31,
2013
Client assets .......................................................... $ 2,025 $ 1,909
Fee-based client assets(5) ............................................... $ 785 $ 697
Fee-based client assets as a percentage of total client assets(5) .................. 39% 37%
Client liabilities ....................................................... $ 51 $ 39
Bank deposit program(6) ................................................ $ 137 $ 134
Wealth Management U.S. Subsidiary Banks data(7):
Investment securities portfolio ........................................ $ 57.3 $ 53.4
Loans and lending commitments ...................................... $ 42.7 $ 29.5
Wealth Management representatives ....................................... 16,076 16,456
Retail locations ........................................................ 622 649
(1) On October 1, 2014, the Managed Futures business was transferred from the Company’s Wealth Management business segment to the
Company’s Investment Management business segment. All prior-period amounts have been recast to conform to the current year’s
presentation.
(2) Annual revenues per representative for 2014, 2013 and 2012 equal the Company’s Wealth Management business segment’s annual
revenues divided by the average representative headcount in 2014, 2013 and 2012, respectively.
(3) Client assets per representative equal total period-end client assets divided by period-end representative headcount.
(4) Fee-based asset flows include net new fee-based assets, net account transfers, dividends, interest and client fees and exclude cash
management-related activity.
(5) Fee-based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on
those assets.
(6) Balances in the bank deposit program included deposits held by the Company’s U.S. Subsidiary Banks of $128 billion and $104 billion
at December 31, 2014 and December 31, 2013, respectively, with the remainder held at Citi-affiliated FDIC-insured depositories.
See Note 3 to the Company’s consolidated financial statements in Item 8 for further discussion of the Company’s customer deposits held
by Citi.
(7) Wealth Management U.S. Subsidiary Banks refers to the Company’s U.S. bank operating subsidiaries MSBNA and MSPBNA.
Wealth Management JV. On June 28, 2013, the Company completed the purchase of the remaining 35% stake
in the Wealth Management JV for $4.725 billion. As the 100% owner of the Wealth Management JV, the
Company retains all of the related net income previously applicable to the noncontrolling interests in the Wealth
Management JV and benefits from the termination of certain related debt and operating agreements with the
Wealth Management JV partner.
Concurrent with the acquisition of the remaining 35% stake in the Wealth Management JV, the deposit sweep
agreement between Citi and the Company was terminated. During 2014 and 2013, $19 billion and $26 billion,
respectively, of deposits held by Citi relating to the Company’s customer accounts were transferred to the
Company’s depository institutions. At December 31, 2014, approximately $9 billion of additional deposits are
scheduled to be transferred to the Company’s depository institutions on an agreed-upon basis through June 2015.
For further information, see Note 3 to the Company’s consolidated financial statements in Item 8.
Net Revenues. The Company’s Wealth Management business segment’s net revenues are composed of
Transactional, Asset management, Net interest and Other revenues. Transactional revenues include Investment
banking, Trading, and Commissions and fees. Asset management revenues include Asset management,
distribution and administration fees, and referral fees related to the bank deposit program. Net interest income
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