Morgan Stanley reached $10 trillion in combined client assets across its Wealth and Investment Management divisions in the second quarter of 2026, marking a major milestone for the firm after years of pursuing the ambitious target.
The milestone came on the back of record performance across the firm. Wealth Management added $148.1 billion in net new assets during the quarter, with more than half of that inflow tied to IPO-related activity from clients in Morgan Stanley’s Workplace channel, according to the firm’s July 15 earnings report.
CEO Ted Pick had set the $10 trillion goal as a strategic priority, originally envisioning it as a combined target for both the Wealth and Investment Management units. In June 2026, Pick raised expectations further, stating that Wealth Management alone could potentially reach $10 trillion, supported by the firm’s E*TRADE acquisition, its Workplace benefits platform, and roughly $400 billion in flows that have migrated from self-directed channels into adviser-led relationships since 2020.
The $10 trillion figure combines assets across both divisions: Wealth Management held $8.1 trillion in client assets, while Investment Management contributed roughly $2 trillion in assets under management. The combined pool reflects Morgan Stanley’s transformation into an integrated wealth and asset management powerhouse over the past decade.
Despite reaching the milestone, Morgan Stanley remains smaller than Charles Schwab, which held $13.14 trillion in total client assets as of May 2026. However, Morgan Stanley’s achievement underscores the firm’s competitive strength in capturing high-net-worth and institutional clients, driven by its leading investment banking franchise and integrated advisory model.
The Q2 performance was bolstered by broader market strength and a rebound in investment banking activity. Morgan Stanley reported record firm-wide net revenues of $21.3 billion for the quarter, compared with $16.8 billion a year earlier, and net income of $5.6 billion, or $3.46 per diluted share. The Institutional Securities division posted record revenues of $11.0 billion, driven by strength in equities and investment banking, while Wealth Management delivered record net revenues of $8.9 billion on elevated asset management fees and robust client activity.
The milestone reflects Morgan Stanley’s broader strategic shift toward wealth and asset management as a more stable, fee-based revenue source. The firm has invested heavily in technology and talent to support this transition, and the record net new assets in Q2 suggest the strategy is gaining traction with both new and existing clients, particularly those benefiting from recent equity market strength and the surge in initial public offerings.
Sources
- Morgan Stanley SEC Filing — Q2 2026 earnings release detailing the $10 trillion milestone, $148.1 billion in net new assets, and record firm-wide revenues and earnings
- AdvisorHub — CEO Ted Pick’s remarks on the $10 trillion wealth management target and the $400 billion migration into adviser-led relationships since 2020
- Charles Schwab Press Release — Total client assets of $13.14 trillion as of May 2026
