Morgan Stanley’s $2.4 trillion wealth-management unit has turned to BlackRock Inc. for an edge in technology as it seeks to get its clients to move all their assets to the bank.
The firm has been working for two years to integrate Aladdin, BlackRock’s risk-management system, into its platforms, according to Andy Saperstein, co-head of Morgan Stanley’s wealth-management unit.
The technology can identify assets that are outliers based on an owner’s risk appetite and show clients “risks that they didn’t even know where they were taking,” he said.
Morgan Stanley is highlighting other brokerages’ inability to provide the same analysis as it looks to attract the $2 trillion that its clients have at other institutions, Saperstein said.
“We’ve just never given them a real good reason to consolidate those assets with us,” Saperstein said at a conference in New York Tuesday hosted by Deutsche Bank AG. “Now, they have a reason, and we can quantify that benefit for them.”