That Draft You Feel? Brokers with $2 Billion AUM Whizzing Out of Morgan Stanley
Morgan Stanley has had a particularly rough spring.
Archrival Merrill Lynch said Monday that it recruited a three-broker team in Bloomington, Minnesota with more than 65 years of experience at Morgan Stanley in late April. The announcement follows our earlier reports of a team in Boston with $1.2 billion of client assets that made the same intra-wirehouse hop in May.
The Minnesota team, brokers Larry Pohlen, Marc Terris, Michael Kasper and two client associates, managed $555 million of client assets when they left Morgan Stanley on April 29, according to a statement from Merrill.
Pohlen, who began his career at Piper Jaffray in 1995, hooked up with Kasper and Terris at Morgan Stanley in 2000, according to his BrokerCheck history. Kasper, aside from a two-month stint at the former Dain Bosworth in 1992, had been with Morgan Stanley and predecessor firm Dean Witter for 34 years.
Terris also was a Morgan Stanley lifer, having started his brokerage career at its Bloomington office in 1998.
Not all client assets move along with brokers, of course, but the loss of the two teams at Morgan Stanley were exacerbated by some other departures to firms besides Merrill. A second team at a Morgan Stanley Boston office with around $350 million in assets joined Raymond James Financial’s employee network in May.
UBS’s Wealth Management Americas unit took its bite by hiring Morgan Stanley lifer, Karl Kreshpane in mid-May. He produced around $2.5 million in the previous 12 months.
Last week, a New York City team with about $4 million of production that had been with Morgan Stanley since 2008 jumped to Jefferies Group’s small retail brokerage unit.
A Morgan Stanley spokeswoman cautioned against reading much into the outward moves, saying the biggest U.S. brokerage firm with more than 15,000 advisors has experienced a “steady stream of incoming recruits” with very positive asset and trailing-12 revenue flows this spring.
“Some of these recruits want publicity for their moves, which will be communicated in due course,” she said.
Rick Rummage, a Virginia-based broker headhunter, said the departures indicate that the loans that Morgan Stanley gave to retain brokers after it absorbed Smith Barney have vested rather than to widespread unhappiness with the firm.
“It’s more likely a cluster of advisor groups whose retention deals are up and who are looking for a big check,” the Rummage Group owner said,
In April, Morgan Stanley said it recruited the team of Lei Sun and Zhigang Shen from Merrill Lynch’s Florham Park, NJ, office. April also showered Morgan Stanley with the arrival of former Credit Suisse broker Beth Scanlan, who managed around $375 million in San Francisco.