Morgan Stanley eyes advisers as global shops line up Australia’s rich

afr.com:

Morgan Stanley’s wealth management arm is searching for more financial advisers to target an ever-growing list of wealthy Australian families.

The investment bank’s local division is fixed on winning over individuals and families with between $1 million and $30 million in investible assets, a space that has become increasingly crowded as global banks from HSBC to UBS all compete for the money of rich Australians.

Morgan Stanley’s wealth management boss, Rebecca Hill, wants experienced advisers, but is also investing in junior talent. AFR

To execute this strategy, the firm wants experienced advisers who bring in about $1.8 million in revenue per year. Morgan Stanley also planned to invest in developing junior employees. “We are focused on hiring advisers that fit with our strategic focus areas,” Rebecca Hill, the head of Morgan Stanley’s Australian wealth management arm, said.

There is a “significant market opportunity with wealthy Australians,” Ms Hill added. Family offices, for example, have grown their assets under management, and wealth managers are lining up to give advice on private credit and philanthropic investments that offer favourable tax credits.

There are approximately 600,000 high-net-worth individuals in Australia with about $2.8 trillion in investible assets, yet 54 per cent of them are without an adviser, data from Investment Trends showed.

Australia’s ultra-high segment – typically families and individuals with more than $30 million in investible assets – is projected to increase to about 27,000 people by 2026, up 31 per cent from 2021, the data revealed.

As millionaires skew younger and families prepare for one of the biggest generational transfers of wealth in the next seven years, financial advisers