Morgan Stanley sticks its oar in

The newest face in the Irish wealth management sector is Morgan Stanley Quilter.

The British-based subsidiary of the US merchant bank Morgan Stanley opened an office in Dublin last week and has high hopes of tapping the wealth accumulated in Ireland during the Tiger years.

The group has 11 branches in the UK, including the Channel Islands, but this is its first venture beyond those borders - and just the second new office since Morgan Stanley acquired Quilter in 2001.

Mr Brian Weber, who heads the 10-strong Dublin operation, is no stranger to the local scene. He was previously in charge of the premier trading service in the private client division of Ireland's largest stockbroker, Davy.

What sets Morgan Stanley Quilter apart from its opposition, he says, is the bespoke nature of its service. "We devise investment solutions which are tailored to the individual."

Company managing director Mr Martin Baines says the group has been eyeing the Irish market for some time. "Dublin is a major financial centre and we are pleased to be here. We have wanted to be in Dublin for a while but needed the right people to do it. You do need a local presence. It was the same when we opened in Glasgow. You cannot take people from London and put them in Glasgow. It doesn't work."

Their chance came when they persuaded Mr Weber and seven portfolio managers in Davy's private clients division to jump ship. Goodbody veteran Tony Curran has also joined the new office.

Mr Weber says the outlook is bright for the new arrival. He says there has been a growing sophistication in the private client market in Ireland in recent years and he believes that Morgan Stanley Quilter is well positioned to serve it.

"We have the advantage of having local people on the ground here, who know the local scene but can also leverage the expertise that runs through a giant organisation like Morgan Stanley."

While Morgan Stanley Quilter has around £4 billion sterling (€5.7 billion) under management, its parent has $40 billion. With 700 offices in 28 countries and an extensive research operation to augment Quilter's 12 London-based research staff, it provides a level of in-house market knowledge globally that it believes sets it apart from many of the domestic players in the Irish market.

It also relies heavily on technological back-up that allows its advisers to assess at a glance where individual portfolios are in line with benchmarks agreed with clients.

Mr Weber says the company is targeting a wide range of clients, including individual pensions business and charities requiring investment advice. However, he acknowledges there is a level below which the type of services offered by a group like Morgan Stanley Quilter are not viable.

"We deal in clients who need structured portfolios and such clients need diversification within those portfolios," he says. "That requires investment of a certain level, around €250,000. Below that, you are really looking at collective or unitised investments. Our business is more about personal service."

Within the target area, the investment house is confident of the future. "Private banking and wealth management is a growing sector of the investment business and we are here for the long term," says Mr Baines. "We feel there is a market in Ireland."

Mr Weber says the PricewaterhouseCoopers report illustrates the opportunity open to Morgan Stanley Quilter, with its finding that 85 per cent of the wealth management business in Ireland comes from "new money". "These are people who tend to be more concerned about how their investments are doing and they place a premium on quality service," he says.

Morgan Stanley Quilter says it charges just one all-encompassing fee to clients, covering portfolio management, custody and other fees and charges. This amounts to 1.25 per cent of the investment fund per annum, charged six months in arrears.

As for security, like everyone in the investment business Morgan Stanley Quilter is keen to reassure a market still coming to terms with the collapse of two stockbrokerages in recent years.

"The level of protection afforded to our clients is the highest in the market," says Mr Baines. "We apply extremely high standards internally and have always had good relations with regulators."