Morgan Stanley has inexplicably decided that its advisors can no longer place clients in Vanguard mutual funds. If you already own them they won’t force you to sell (how nice of them), but don’t even think about putting any new money into them. This isn’t good for individual investors or financial advisors at Morgan Stanley.
The excuse was that the firm is reducing its offerings of underperforming mutual funds, but in reality, it is more likely that they only want to offer funds from investment managers that are willing to pay to be on their platform.
Wall Street executives need to figure out how to offer more/better services to increase revenues and not rely on these type of pay-to-play relationships. This only hurts their clients and advisors, and will only result in more lost assets to Registered Investment Advisors/Independents.
I guess we should at least be happy they didn’t bar their advisors from using Vanguard exchange-traded funds (ETFs)…
If you haven’t recently reviewed your investments you should contact your CERTIFIED FINANCIAL PLANNER™ Practitioner.