Morgan Stanley (MS) Announces Two Leadership Changes

Morgan Stanley (NYSE: MS) announced today the appointment of two industry veterans to expand the leadership team within its Investment Management business. Jeffrey L. Shames, the former Chairman and CEO of MFS Investment Management, will join the Firm as a Senior Advisor to Morgan Stanley Investment Management (MSIM). Additionally, Edmond N. Moriarty III, who previously served as a Senior Vice President at Merrill Lynch & Co., will join the Firm as Chief Operating Officer of MSIM. In addition to their new responsibilities in Investment Management, Mr. Shames and Mr. Moriarty will also act as Senior Advisor and Chief Operating Officer, respectively, of Morgan Stanley’s Global Research division.

Mr. Shames, who has over 22 years of investment management experience, and Mr. Moriarty, who has over 23 years of experience on Wall Street, will report to Gregory J. Fleming, President of MSIM, and will start in their new roles today.

Mr. Shames will be responsible for all strategy related to MSIM, across investment management, client service and marketing. Mr. Moriarty will have responsibility for all operations across MSIM, including finance and risk management.

“I am extremely pleased to add Jeff and Ed to the senior leadership team as we reposition MSIM to take advantage of its historical strengths as a leading institutional asset manager,” said Mr. Fleming. “Together, Jeff and Ed bring to MSIM considerable industry experience and unique skill sets that will help drive forward the progress that has begun in restructuring our Core Asset Management and Merchant Banking businesses. Having worked as an advisor to Jeff for many years, and with Ed during our tenure at Merrill Lynch, I am confident that their combined insights and guidance will be invaluable towards achieving our objectives of superior investment performance, consistent profitability, increased client focus and a best-in-class investment culture.”

The expansion of the leadership team within the division will enable the Firm to continue to take steps to refocus on its institutional and intermediary client bases and reposition MSIM for long-term growth, including:

• Reinforcing a best-in-class investment culture in the Long-Only Institutional business;
  
  
• Capitalizing on the integration of the Firm’s Alternative Investment Partners (AIP) and Graystone Research units into a single fund-of-funds business; and
  
  
• Continuing to build out its Merchant Banking business in areas where the Firm has a competitive advantage.