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Morgan Stanley has beaten a field of 29 other securities houses and jumped three places over last year to be named the best portfolio trading firm by leading investment managers in an annual survey conducted by the Financial News, a securities and investment banking weekly newspaper published in London.
Financial News received responses from 25 chief investment officers and heads of centralised dealing desks at leading fund managers operating in London, including both UK and international firms, managing more than £2 trillion of assets worldwide. They were asked to name the best three portfolio trading houses in 17 different criteria, and these results were then used to calculate the overall rankings.
Morgan Stanley was among the top three in 16 categories, coming first in eight and second in five of the 17 categories overall. It was voted best house for back-office efficiency, the criteria that respondents considered most important. Morgan Stanley also came out well ahead on post-trade service and analysis and received high scores for its technology and ability to handle all stages of transactions electronically.
In addition, Financial News, citing the Greenwich Survey of June 1998, commented that Morgan Stanley is the number one player in trading baskets of European stocks for UK institutions. In an interview with the editor, Tom Levy, Morgan Stanleys head of European programme trading business, said that business sourced from European clients has risen by about 60% this year compared with the first quarter of last year.
The table below gives the overall survey results on a weighted and unweighted basis:
| |
|
Unweighted |
Weighted |
| |
|
Points |
% |
| 1 |
Morgan Stanley |
364 |
19.61 |
19.64 |
| 2 |
Warburg Dillon Read |
356 |
19.15 |
19.34 |
| 3 |
Dresdner Kleinwort Benson |
242 |
13.02 |
13.90 |
| 4 |
Merrill Lynch |
173 |
9.31 |
8.89 |
| 5 |
Goldman Sachs |
153 |
8.23 |
8.12 |
| 6 |
Salomon Smith Barney |
117 |
6.29 |
6.14 |
| 7 |
CSFB |
88 |
4.73 |
5.12 |
| 8 |
Lehman Brothers |
75 |
4.03 |
3.97 |
| 9 |
HSBC |
60 |
3.23 |
3.35 |
| 10 |
ABN Amro |
36 |
1.94 |
2.06 |
| 10 |
Instinet |
36 |
1.94 |
1.89 |
| 12 |
Nomura |
27 |
1.45 |
1.21 |
On an individual category basis, Morgan Stanleys results were as follows:
First place
- Commission charge for agency deals
- Back-office efficiency
- Skill in handling glitches
- Technology and electronic handling
- Pre-trade analytical and advice
- Post-trade service and analysis
- Trading strength in Japanese markets
- Trading strength in North American markets
Second place
- Skill in limiting market impact
- Confidentiality/handling conflicts of interests
- Strength of other relationships with broker
- Trading strength in minor Euro markets
- Trading strength in other markets
Third place
- Speed of execution
- Speed of reporting transactions to clients
- Trading strength in Asia-Pacific markets
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