- Jim Cramer said Morgan Stanley’s asset gathering has been “extraordinary,” highlighting momentum in wealth and investment management.
- Q3 2025 wealth management delivered $8.23B in net revenue, $81B in net new assets, and a 30.3% pre-tax margin, with total client assets reaching $8.9T.
- Institutional Securities surged as equities trading rose 35% and investment banking fees jumped 44%, driving record profits and 23.5% ROTCE.
- The results move Morgan Stanley closer to its $10T client-asset goal while leaving key risks around sustaining inflows and managing macro and regulatory headwinds.
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Jim Cramer’s comment that “the asset gathering in Morgan Stanley has been extraordinary” aligns with the firm’s recent performance: in Q3 2025, it reported ~$81 billion in net new assets in its Wealth Management division, up from $64 billion a year ago, and total client assets across Wealth & Investment Management climbed to $8.9 trillion, a year-over-year jump of ~18%. Wealth Management net revenues were up 13% to $8.23 billion, with the division delivering a strong pre-tax margin (≈30.3%), reinforcing its importance to MS’s income stability.
Meanwhile, across the rest of the firm, strengths in Institutional Securities—especially equities trading (up ~35% YoY to $4.12 billion), and Investment Banking fees rising 44% YoY to $2.11 billion—contributed to record overall revenues (~$18.2 billion) and profits ($4.6 billion, up ~45%). These combined trends validate Cramer’s broader claim of strong financial market activity and asset gathering being a core driver of MS’s growth.
The metrics show Morgan Stanley is closing in on its long-standing goal of $10 trillion in total client assets under management or surveillance—currently at $8.9 trillion as of Q3 2025—suggesting the firm may hit that milestone barring major setbacks. This growth in assets is not just due to valuation appreciation; net new assets ($81B in Q3) and strong fee-based flows underline genuine client acquisition and retention success.
Looking ahead, sustaining this momentum requires maintaining efficiency despite rising costs, continuing favorable market conditions, and successfully managing regulatory capital and macro risks. For investors, this implies Morgan Stanley may benefit more from asset-heavy divisions with stable cashflows versus purely transactional income. Strategic investment decisions should weigh the durability of wealth-based fee revenues and client loyalty, as opposed to volatile capital markets segments, when projecting future performance or positioning relative to peers.
Supporting Notes
- Kramer’s praise: “The asset gathering in Morgan Stanley has been extraordinary,” referring to activity across wealth and investment management.
- Q3 2025 Wealth Management net revenues: ~$8.23 billion, up ~13% YoY.
- Net new assets in Wealth Management in Q3 2025: $81 billion vs. $63.9 billion year prior, indicating acceleration in asset gathering.
- Fee-based client assets in advisor-led channel: $2.653 trillion, up ~15% YoY; self-directed channel assets up ~24%.
- Total client assets across Wealth & Investment Management: ~$8.9 trillion, up ~18% YoY.
- Institutional Securities revenue: $8.52 billion in Q3 2025; investment banking revenue up 44% YoY to ~$2.11 billion.
- Equities trading revenue: ~$4.12 billion, up ~35% YoY, surpassing Goldman Sachs in that segment.
- Overall net income: $4.6 billion, up ~45% from year-ago Q3; ROTCE: ~23.5%.