Morgan Stanley

Morgan Stanley financial adviser survey reveals structured products are high on the investment agenda in 2009

Jan 7, 2009

London —

London, 7 January 2009 - Morgan Stanley (NYSE:MS) today releases the results of a financial adviser survey which puts structured products high on the list of products advisers intend to recommend to clients, on par with mutual funds and cash alternatives. Furthermore, 64% of respondents say they recommend up to 20 structured products per year to clients, and advisers are on the whole more likely to recommend structured products in volatile market conditions.

The survey of 102 UK financial advisers (1) identified Morgan Stanley as one of the top three structured products providers in the UK out of 22 providers nominated by respondents.

When asked if market volatility will affect their inclination to suggest structured products to clients, 40% of respondents said they would be more likely to suggest structured products, just 16% said they would be less likely to suggest them, and 38% said there would be no change.

Financial advisers were also asked their views on the most important attributes of a structured product when reviewing plans on behalf of clients. Although capital protection is top of the list of attributes, advisers still look for good participation rates. The credit rating of the plan manager is also a key concern.

When financial advisers were asked about the kinds of product themes which they would consider recommending to clients, the UK still offers the most attraction. Interestingly, emerging markets is slightly more attractive than the US. There was limited interest in more specialist themes.

Marc Chamberlain, Morgan Stanley Executive Director, Structured Products, comments:

"The survey results show a very positive future for structured products, particularly for larger providers with proven track records. The message is loud and clear - advisers want simple, effective structured products which they can be confident will deliver returns for their clients. We have a proven range of core products for the retail market providing investors with an attractive balance of capital protection and participation. We also have a strong pipeline of products for 2009 to stem the impact of current market volatility on investors' portfolios."