Morgan Stanley Wealth Management Announces Updates to Robo-Advisor Offering

Rhea-AI Summary

Morgan Stanley Wealth Management announced the integration of its robo-advisor, Access Investing, with E*TRADE's Core Portfolios, enhancing digital investment offerings. A new 'Balanced' portfolio featuring 50% equities and 50% fixed-income was introduced to meet diverse investor needs. Upcoming features include tax-loss harvesting for tax management. Core Portfolios require a minimum investment of $500 with a 0.30% annual fee, exempting new accounts from advisory fees for the first three months. Access Investing will soft close to new clients in December.

Positive

• Integration of Access Investing with E*TRADE enhances investment service offerings.
• New 'Balanced' model portfolio added to meet diverse investment preferences.
• No advisory fee for new accounts for the first three months enhances attractiveness.

Negative

• Access Investing will soft close to new clients in December, limiting future growth.

• E*TRADE from Morgan Stanley’s Core Portfolios will be the sole robo-advisor
• New “Balanced” model portfolio added to Core Portfolios lineup
• Core Portfolio’s roadmap includes the addition of key Morgan Stanley Access Investing features such as tax loss harvesting

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley Wealth Management today announced plans to consolidate its robo-advisor offering, Access Investing, within the E*TRADE from Morgan Stanley ecosystem.

The updates are part of the E*TRADE integration as Morgan Stanley seeks to leverage the strengths of each product offered in its suite. Core Portfolios, currently offered by E*TRADE Capital Management, LLC, is specifically designed to help meet the needs of digitally inclined investors and exists within E*TRADE’s award-winning¹ digital brokerage platform, making it a natural home for Morgan Stanley’s robo-advisor.

Core Portfolios offers a managed, diversified portfolio that can be set up online in minutes. Following a short series of questions, investors receive a recommendation for a model portfolio recommendation and can invest with a $500 minimum and a 0.30% annual fee. Clients can further personalize portfolios with Smart Beta and Socially Responsible strategies. The model portfolios leverage the intellectual capital and market analysis of Morgan Stanley’s Global Investment Office. Clients have access to a team of financial professionals² to discuss the markets and potential impacts to their portfolio, while also assisting with more complex situations as they arise. Core Portfolios is currently being offered with no advisory wrap fee to new accounts for a limited time.³

A new “Balanced” 50% equity and 50% fixed-income and cash model portfolio was added to the Core Portfolios model lineup in September. Additionally, over the next several months Core Portfolios will work to add premium features from Morgan Stanley Access Investing, including tax-loss harvesting, which can help manage tax consequences. ⁴

“Throughout the integration we have looked for opportunities to combine Morgan Stanley’s deep wealth management expertise with E*TRADE’s digital prowess,” said Chad Turner, Head of Morgan Stanley Wealth Management’s Digital Direct Channel. “Today represents an important step in that effort, wherein we are combining the most sought-out features of both Core Portfolios and Access Investing to offer an exceptional experience for digitally inclined and beginning investors. This is another powerful example of how we can help meet clients at every step of their financial journey.”

Morgan Stanley Access Investing will soft close to new clients in December.

About Morgan Stanley Wealth Management
Morgan Stanley Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement and trust services.

About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 41 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

1. In Kiplinger’s annual Best Online Brokers and Trading Platforms Review of ten firms across eight categories, E*TRADE earned an overall score of 87.3 out of 100. E*TRADE’s ratings for all category rankings include: Overall (#1), Commissions and Fees (#7), Investment Choices (#3), Mobile App (#1), Tools (#1), Research (#1), User Experience (#5), and Advisory Services (#3). Read the full “Best Online Brokers and Trading Platforms, 2022” survey.
2. For Core Portfolios clients, interaction with E*TRADE Capital Management will generally be limited to the web-based interface. A Core Portfolios client does not have an individual Financial Consultant or portfolio manager assigned to the account. E*TRADE Capital Management, through its Investment Policy Committee and with support of investment professionals, selects, removes, and adds portfolio holdings and determines the program’s rebalancing methodology. Clients will be able to consult with a team of investment professionals by calling 866-484-3658.
3. The Annual Advisory Fee is 0.30% and is the direct fee charged to any client in the advisory program. E*TRADE Capital Management will waive the Core Portfolios advisory program's advisory fee (charged monthly) for the first three full months after an eligible enrollment. Eligible E*TRADE Securities LLC brokerage accounts must enroll in Core Portfolios and have funded the account with at least the required minimum amount by December 31, 2022. The minimum investment is $500 and there are no brokerage trading commissions associated with the advisory program. You will start to pay the program's annual advisory fee immediately following the initial three-month waiver period. The advisory fee waiver does not apply to any other fees and expenses which you may incur in connection with a Core Portfolios account, including, but not limited to, the underlying fees and expenses of any exchanged traded fund or money market fund held in the account. The advisory fee waiver does not apply to ETCM's Blend Portfolios, Dedicated Portfolios, and Fixed Income Portfolios advisory programs.
4. E*TRADE Capital Management and its affiliates do not provide tax or legal advice. Clients are recommended to consult their tax and/or legal advisors.

NOT ALL PRODUCTS AND SERVICES ARE AVAILABLE IN ALL JURISDICTIONS OR COUNTRIES.

Morgan Stanley Access Investing (“MSAI”) is a discretionary investment advisory account where a client may invest in certain investment model strategies managed by Morgan Stanley. Further information is available in the Morgan Stanley Access Investing Program Form ADV Part 2A at www.morganstanley.com/ADV.

Morgan Stanley Access Investing ® is a registered service mark of Morgan Stanley Smith Barney LLC. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States.

Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Individuals are urged to consult their personal tax or legal advisors to understand the tax and legal consequences of any actions, including any implementation of any strategies or investments described herein.

© 2022 Morgan Stanley Smith Barney LLC. Member SIPC.

About Core Portfolios, E*TRADE from Morgan Stanley and Important Notices

Prior to investing in a managed portfolio, E*TRADE Capital management will obtain important information about your financial situation and risk tolerances and provide you with a detailed investment proposal, investment advisory agreement, and wrap fee programs brochure. These documents contain important information that should be read carefully before enrolling in a managed account program. Please read the E*TRADE Wrap Fee Programs Brochure for more information on the advisory fee, rebalancing methodologies, portfolio management, affiliations, and services offered.

Core Portfolios does not provide advice regarding whether or not to open a managed account. The Core Portfolios advisory program recommends portfolios based on answers to your Investor Profile Questionnaire. E*TRADE Capital Management utilizes an algorithm to determine your recommended portfolio. Not all answers are weighted equally and answers related to time horizon and risk are weighted the most when scoring the Investor Profile Questionnaire. The recommendation is not a complete financial plan and the algorithm does not consider outside assets, concentration of holdings in other accounts, and multiple investment goals. Additionally, clients have the ability to customize their portfolio by selecting an additional investment strategy. The client selected strategies include either socially responsible investing or smart beta. For more information about socially responsible investing or smart beta strategies, read the E*TRADE Wrap Fee Programs Brochure.

E*TRADE from Morgan Stanley provides financial services to retail customers. Securities products and services offered by E*TRADE Securities LLC, Member SIPC. Investment advisory services offered by E*TRADE Capital Management, LLC, a Registered Investment Adviser. Commodity futures and options on futures products and services offered by E*TRADE Futures LLC, Member NFA. Banking products and services are offered by Morgan Stanley Private Bank, National Association, Member FDIC. All are separate but affiliated subsidiaries of Morgan Stanley. More information is available at www.etrade.com.

The information provided herein is for general informational purposes only and should not be considered investment advice. Past performance does not guarantee future results.

E*TRADE from Morgan Stanley, E*TRADE, and the E*TRADE logo are trademarks or registered trademarks of E*TRADE from Morgan Stanley. ETFC-G
ETFC

View source version on businesswire.com: https://www.businesswire.com/news/home/20221003005531/en/

Media Relations Contact: Daniel Fay, Daniel.Fay@morganstanley.com

Source: E*TRADE

FAQ

What recent changes did Morgan Stanley announce regarding its robo-advisor services?

Morgan Stanley is consolidating its Access Investing robo-advisor with E*TRADE's Core Portfolios.

What is the new model portfolio introduced by Morgan Stanley?

A new 'Balanced' model portfolio consisting of 50% equities and 50% fixed-income was added.

What are the investment requirements for Core Portfolios at E*TRADE?

Core Portfolios require a minimum investment of $500 and charge a 0.30% annual fee.

When will Morgan Stanley Access Investing soft close to new clients?

Access Investing is set to soft close to new clients in December.

What features will be integrated into Core Portfolios from Access Investing?

Key features such as tax-loss harvesting will be added to Core Portfolios.