Greg Fleming, who runs Morgan Stanley’s asset-management division, said the business will boost profitability in the next two years while increasing assets by about one-third.
Reaching about $500 billion of assets under management by the end of 2016 from $373 billion in December is 'very achievable', Fleming, 50, said at an investor conference hosted by Credit Suisse. Return on equity will rise to about 20% by then and will be maintained consistently, he said. That compares with 18% last year.
Bloomberg News reports that Fleming set new targets four years after he was brought in to help repair the asset-management unit amid losses and investor withdrawals. While the division is the smallest of the New York-based investment bank’s three businesses, it was also the most profitable in 2013.
'We’ve come a long ways', Fleming said. 'We are well-positioned over the next three years to continue to grow investment management and increase its relevance and contribution to Morgan Stanley'.
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