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Morgan Stanley Mutual Fund: Limited Offerings

As long as long-term fundamentals continue to play out, there is a reasonable case for investing at these levels, especially if an investor has a two to three year time horizon.

The myth that growth is the only way to profitability is shattered the way Morgan Stanley AMC does business. The fund house with just five funds has been a cautious player and plans to expand its offering by adding more research resources. “Our principal goal is to broaden our product range,” says Anthony Heredia, MD and CEO of Morgan Stanley. This move should test the AMCs capability and ability to handle different products and investor segment expectations.

Disappointing AUM growth: We need to work with the regulators to evaluate changes that bring the distributor into the equation. Possible solutions would include re-looking at the multiple share class models, which allows investors freedom to decide cost models that are appropriate for them, whilst at the same time, eases administration of the fee that distributors earn on the product.

Regulatory changes: Changes have to be seen in the context of the number of investors it impacts positively. At the moment, this number is much lower than desired, and hence the change on an aggregate basis hasn't been as expected. But in the long run, I expect the industry to find solutions to help distributors re-focus on the fund industry. Once that happens, these changes will have the expected positive impact.

My investing style: As a matter of personal choice, I do not buy direct stocks or bonds. I have always believed in investing in the schemes of the fund I represent, and hence all my personal investments are in schemes of Morgan Stanley.