1 00:00:02,200 --> 00:00:06,800 Speaker 1: This is Masters in Business with Barry Ridholts on Bloomberg Radio. 2 00:00:07,440 --> 00:00:10,160 Speaker 1: This week on the podcast, I have a special guest. 3 00:00:10,520 --> 00:00:13,239 Speaker 1: His name is Mandel Crowley. He is the head of 4 00:00:13,240 --> 00:00:17,560 Speaker 1: private wealth management at Morgan Stanley. We have a fascinating 5 00:00:17,600 --> 00:00:22,079 Speaker 1: conversation not only about wealth management, about working in a 6 00:00:22,160 --> 00:00:26,680 Speaker 1: giant firm and how one starts as an intern and 7 00:00:26,720 --> 00:00:31,040 Speaker 1: works their way up to a really important and influential position, 8 00:00:31,440 --> 00:00:34,640 Speaker 1: but how he as a person of color, deals with 9 00:00:34,680 --> 00:00:38,400 Speaker 1: the lack of diversity in the industry and what various 10 00:00:38,440 --> 00:00:41,680 Speaker 1: companies are doing about the lack of people of color, 11 00:00:42,320 --> 00:00:46,519 Speaker 1: the lack of females in investment management, How this happened 12 00:00:46,680 --> 00:00:50,479 Speaker 1: and why there are reasons to be hopeful that change 13 00:00:50,560 --> 00:00:55,760 Speaker 1: has begun not only in a grassroots basis, but in 14 00:00:55,800 --> 00:01:00,560 Speaker 1: corporate America as well, and that this isn't merely another 15 00:01:00,600 --> 00:01:03,760 Speaker 1: cycle where people make noise and then it fades. It 16 00:01:03,840 --> 00:01:06,920 Speaker 1: looks like things are changing and for the better. So 17 00:01:06,959 --> 00:01:09,640 Speaker 1: if you are at all interested in wealth management, how 18 00:01:09,640 --> 00:01:13,240 Speaker 1: to attract and recruit top talent, how to build a 19 00:01:13,280 --> 00:01:17,840 Speaker 1: financial services firm, you will find this conversation to be fascinating. So, 20 00:01:17,840 --> 00:01:23,680 Speaker 1: with no further ado, my conversation with Morgan Stanley's Mandel Crawley. 21 00:01:24,520 --> 00:01:29,120 Speaker 1: This is Masters in Business with Barry Ridholts on Bloomberg Radio. 22 00:01:29,640 --> 00:01:33,080 Speaker 1: My special guest today is Mandel Crawley. He is the 23 00:01:33,080 --> 00:01:36,640 Speaker 1: head of Private Wealth Management at Morgan Stanley. Along with 24 00:01:36,720 --> 00:01:39,560 Speaker 1: wearing a number of other hats uh, he has an 25 00:01:39,680 --> 00:01:44,240 Speaker 1: MBA from Formham University and has spent his entire career 26 00:01:44,319 --> 00:01:49,640 Speaker 1: at Morgan Stanley. Mandel Crawley, Welcome to Bloomberg. I appreciate it. 27 00:01:49,640 --> 00:01:51,600 Speaker 1: It is really good to be here with you. Thanks 28 00:01:51,600 --> 00:01:54,160 Speaker 1: for having me on my pleasure. So I mentioned you 29 00:01:54,200 --> 00:01:58,240 Speaker 1: spent your whole career at Morgan. Tell us about how 30 00:01:58,240 --> 00:02:01,680 Speaker 1: you first got started in the final actual services industry. 31 00:02:01,840 --> 00:02:05,160 Speaker 1: What did you imagine your career would be like? Yeah, 32 00:02:05,240 --> 00:02:08,960 Speaker 1: you know, thanks very I have to tell you my past. 33 00:02:09,040 --> 00:02:12,400 Speaker 1: The finance is unorthodox, to say the least. I started 34 00:02:12,440 --> 00:02:17,160 Speaker 1: as a high school intern at one of more Elitis 35 00:02:17,360 --> 00:02:21,160 Speaker 1: predecessor firms at Dean Winter And you know, at the 36 00:02:21,200 --> 00:02:24,960 Speaker 1: time it was a work study commitment, making five dollars 37 00:02:25,000 --> 00:02:27,799 Speaker 1: an hour, working about twenty hours a week. I had 38 00:02:27,919 --> 00:02:32,400 Speaker 1: zero interests in finance. Me frankly, I had every intention 39 00:02:32,639 --> 00:02:35,399 Speaker 1: at that time of my young life to be an educator. 40 00:02:35,520 --> 00:02:38,560 Speaker 1: But you know, through this internship, I got exposed to 41 00:02:38,760 --> 00:02:43,400 Speaker 1: financial services, specifically the cells and trading business, the capital markets. 42 00:02:43,919 --> 00:02:48,040 Speaker 1: Happened to work with a group of professionals who took 43 00:02:48,040 --> 00:02:50,600 Speaker 1: a real interest in me. And the rest is, as 44 00:02:50,680 --> 00:02:54,359 Speaker 1: they say, history. So how long were you an intern 45 00:02:54,480 --> 00:02:57,640 Speaker 1: four and what eventually led you to working on a 46 00:02:57,680 --> 00:03:02,560 Speaker 1: barn desk? So the internship was reporting about fifteen folks. 47 00:03:02,800 --> 00:03:08,120 Speaker 1: It was a muni minicipal bond public finance self trading effort. 48 00:03:08,880 --> 00:03:12,240 Speaker 1: And initially that internship was only supposed to last a year, 49 00:03:13,000 --> 00:03:16,320 Speaker 1: and the guy who ran the desk essentially had the 50 00:03:16,360 --> 00:03:18,840 Speaker 1: relationship with my local high school. It was a vocational 51 00:03:18,919 --> 00:03:22,600 Speaker 1: high school in Chicago, and every year he'd essentially have 52 00:03:22,720 --> 00:03:24,519 Speaker 1: a new student come in and it was a great 53 00:03:24,520 --> 00:03:28,320 Speaker 1: opportunity to give a kid from the school some exposure. 54 00:03:28,360 --> 00:03:31,520 Speaker 1: And then you you obviously have some relatively and expensive 55 00:03:31,600 --> 00:03:36,200 Speaker 1: labor doing some relatively administrative things including running there and 56 00:03:36,520 --> 00:03:39,600 Speaker 1: you know, supporting your your your salespeople and your traders. 57 00:03:40,120 --> 00:03:43,000 Speaker 1: And that had bitually been the mob for you know, 58 00:03:43,080 --> 00:03:47,640 Speaker 1: four or five years. And my situation was such where 59 00:03:48,200 --> 00:03:50,720 Speaker 1: you know, I'm one of three boys. I won't get 60 00:03:50,920 --> 00:03:53,800 Speaker 1: over the autobiographical here, but my brother and I we 61 00:03:53,840 --> 00:03:58,360 Speaker 1: lost our parents relatively early and life where I needed 62 00:03:58,960 --> 00:04:02,040 Speaker 1: to work right, So in addition to getting my education 63 00:04:02,840 --> 00:04:06,920 Speaker 1: wasn't particularly optional um around if I was going to 64 00:04:06,960 --> 00:04:10,680 Speaker 1: work on it. So long story short, um being aware 65 00:04:10,720 --> 00:04:14,360 Speaker 1: of my personal situation, when my internship ended, I was 66 00:04:14,440 --> 00:04:18,119 Speaker 1: given the opportunity to extend, and when it came time 67 00:04:18,160 --> 00:04:21,520 Speaker 1: to going to undergrad, I had the opportunity to work 68 00:04:21,600 --> 00:04:24,080 Speaker 1: full time. And then I end up going to undergrad 69 00:04:24,160 --> 00:04:27,679 Speaker 1: full time in the evening. Again to a non traditional path, 70 00:04:27,800 --> 00:04:30,479 Speaker 1: but it's one that that truly proved to be life 71 00:04:30,560 --> 00:04:33,359 Speaker 1: changing in so many ways. So you're on the bond 72 00:04:33,360 --> 00:04:36,040 Speaker 1: desk for a couple of years and then you moved 73 00:04:36,040 --> 00:04:39,960 Speaker 1: to is this right, chief marketing officer of Morgan Stanley. 74 00:04:40,040 --> 00:04:45,919 Speaker 1: That sounds like a giant position. Yeah. So I spent 75 00:04:46,040 --> 00:04:49,000 Speaker 1: fourteen fifteen years in the sales and trading space. So 76 00:04:49,200 --> 00:04:53,279 Speaker 1: at the mentioned started out in the muni area, moved 77 00:04:53,320 --> 00:04:56,440 Speaker 1: over to credit and largely at war a number of 78 00:04:56,480 --> 00:05:00,560 Speaker 1: different in the sales and distribution arena, and I had 79 00:05:00,600 --> 00:05:04,800 Speaker 1: a healthy measure of success and you know, to the 80 00:05:04,880 --> 00:05:08,640 Speaker 1: point vary it it's definitely far from intuitive going from 81 00:05:08,640 --> 00:05:11,920 Speaker 1: being a bond salesman to chief marketing officer. And I 82 00:05:12,000 --> 00:05:14,320 Speaker 1: had tried to distribute that to a couple of things. One, 83 00:05:14,640 --> 00:05:18,120 Speaker 1: you know, being at an organization, as you mentioned at 84 00:05:18,120 --> 00:05:20,640 Speaker 1: the beginning, you know, twenty eight years at the firm, 85 00:05:20,680 --> 00:05:22,200 Speaker 1: and I happen to be fortunate to be at a 86 00:05:22,200 --> 00:05:25,240 Speaker 1: place that's very much in growth mode because I think 87 00:05:25,279 --> 00:05:28,479 Speaker 1: as a firm, for firm not growing, essentially the optionality 88 00:05:28,480 --> 00:05:31,560 Speaker 1: of the employees is impaired. So Morgan Stanley happens to 89 00:05:31,600 --> 00:05:34,680 Speaker 1: be in growth mode. Second, you know, and this is 90 00:05:34,720 --> 00:05:37,240 Speaker 1: more I think specific and maybe this gets into a 91 00:05:37,279 --> 00:05:40,840 Speaker 1: little bit of how I think about talent oversimplified way. 92 00:05:40,960 --> 00:05:44,520 Speaker 1: You've got specialists, right, and then you've got what i'd 93 00:05:44,520 --> 00:05:47,640 Speaker 1: like to call natural athletes right with with some agility. 94 00:05:47,680 --> 00:05:50,440 Speaker 1: And I've I've always sort of liked to think of 95 00:05:50,480 --> 00:05:54,159 Speaker 1: myself as somebody who who's got some versatility, who's got 96 00:05:54,279 --> 00:05:57,279 Speaker 1: the dexterity to do a number of different things if 97 00:05:57,320 --> 00:06:00,279 Speaker 1: given the opaty. And so you know, the cultural more 98 00:06:00,279 --> 00:06:04,000 Speaker 1: in Stanley, as as bizarre as they sound, somebody going 99 00:06:04,160 --> 00:06:08,600 Speaker 1: from fixed income to becoming CMO, which, by the way, 100 00:06:08,920 --> 00:06:11,960 Speaker 1: My wife was quick to point out that I don't 101 00:06:11,960 --> 00:06:14,800 Speaker 1: even have a creative bone in my body, But the 102 00:06:14,839 --> 00:06:17,840 Speaker 1: firm could have decided that I still was the right 103 00:06:17,880 --> 00:06:19,920 Speaker 1: guy for the opportunity. But the firm has a history 104 00:06:19,920 --> 00:06:24,000 Speaker 1: of moving talent cross the ecosystem. A quick example of 105 00:06:24,040 --> 00:06:27,520 Speaker 1: that is there's a guy who ran co let our 106 00:06:27,520 --> 00:06:32,160 Speaker 1: fixed income business globally who is now the chief technology officer, 107 00:06:32,279 --> 00:06:36,640 Speaker 1: also runs operations and has responsibility for the overall resiliency 108 00:06:36,680 --> 00:06:38,479 Speaker 1: of the firm. And so if you look at some 109 00:06:38,520 --> 00:06:40,960 Speaker 1: of the executives at more in Stanley, that is it's 110 00:06:40,960 --> 00:06:44,360 Speaker 1: actually fairly common, more common than multiople would think. So 111 00:06:44,400 --> 00:06:47,960 Speaker 1: how did you get from chief marketing officer to head 112 00:06:48,000 --> 00:06:51,520 Speaker 1: of private wealth management bonds to marketing to wealth management, 113 00:06:51,960 --> 00:06:56,200 Speaker 1: as you said, not the traditional career path. Yeah, like 114 00:06:56,320 --> 00:06:59,599 Speaker 1: private wealth businesses business that I've I've long had a 115 00:06:59,640 --> 00:07:02,680 Speaker 1: great of interest and so when I was in sales 116 00:07:02,680 --> 00:07:07,040 Speaker 1: and trading in many respects my core sort of market 117 00:07:07,080 --> 00:07:10,960 Speaker 1: if you were my core client, or financial advisors and 118 00:07:11,080 --> 00:07:14,840 Speaker 1: by definition their clients. And so I had always been 119 00:07:14,880 --> 00:07:20,600 Speaker 1: fairly proximate to the wealth management franchise and some of 120 00:07:20,600 --> 00:07:24,800 Speaker 1: our most active powder parties, if you will were private 121 00:07:24,800 --> 00:07:27,640 Speaker 1: wealth advisors, and so that was sort of my early 122 00:07:29,040 --> 00:07:32,320 Speaker 1: if you will, to that business. And there was an 123 00:07:32,320 --> 00:07:34,360 Speaker 1: individual who ran in the business you know, call it 124 00:07:34,480 --> 00:07:38,000 Speaker 1: Circles two thousand five, two thousand six, who who had 125 00:07:38,040 --> 00:07:42,120 Speaker 1: always been impressed with and so it was always an 126 00:07:42,160 --> 00:07:44,960 Speaker 1: opportunity when I was in the in the chief marketing 127 00:07:45,000 --> 00:07:47,560 Speaker 1: officer job. One of the benefits of it the first 128 00:07:47,560 --> 00:07:49,400 Speaker 1: time I got an opportunity to sort of zoom out 129 00:07:50,120 --> 00:07:53,680 Speaker 1: and and see the full firm ecosystem, and I got 130 00:07:53,720 --> 00:07:58,480 Speaker 1: an incredibly deep appreciation for the brand of Morgan Stanley, 131 00:07:58,520 --> 00:08:01,960 Speaker 1: not just in the US context, but boldly I also 132 00:08:02,040 --> 00:08:05,040 Speaker 1: got an opportunity to appreciate how all of the different 133 00:08:05,080 --> 00:08:08,440 Speaker 1: businesses within the firm, so from sales and trading, investment banking, 134 00:08:08,440 --> 00:08:11,640 Speaker 1: prime broker, it's wealth management, investment management, how all those 135 00:08:11,680 --> 00:08:16,680 Speaker 1: pieces together, and the one common denominator across each of 136 00:08:16,720 --> 00:08:20,360 Speaker 1: those businesses is that private wealth essentially, you know, had 137 00:08:20,600 --> 00:08:23,440 Speaker 1: a reason to be connected with teach of them. And 138 00:08:23,520 --> 00:08:27,680 Speaker 1: so the fascinating thing about the private wealth business, if 139 00:08:27,720 --> 00:08:30,440 Speaker 1: I had to overstand by a single word, is the 140 00:08:30,480 --> 00:08:33,599 Speaker 1: complexity of it all. And so it was that complexity 141 00:08:33,720 --> 00:08:36,880 Speaker 1: that that really got my attention and again that level 142 00:08:36,880 --> 00:08:39,800 Speaker 1: of curiosity that I had. And so as I was 143 00:08:39,960 --> 00:08:42,360 Speaker 1: in my third year as chief marketing off the firm, 144 00:08:42,400 --> 00:08:44,360 Speaker 1: it was a roleout was enjoying a great deal. The 145 00:08:44,360 --> 00:08:47,480 Speaker 1: opportunity presented itself, and as I mentioned earlier, it was 146 00:08:47,520 --> 00:08:48,880 Speaker 1: one that I knew I was going to go after, 147 00:08:48,960 --> 00:08:51,760 Speaker 1: and unfortunately Farm had the confidence to give me the mandate. 148 00:08:51,840 --> 00:08:53,559 Speaker 1: And now it's been three years since I've been in 149 00:08:53,600 --> 00:08:55,680 Speaker 1: the seat and it's been everything I hoped it would 150 00:08:55,720 --> 00:08:59,760 Speaker 1: be quite quite interesting. So let's talk a little bit 151 00:09:00,000 --> 00:09:05,640 Speaker 1: about the financial services industry. Obviously, there's a diversity problem. 152 00:09:06,200 --> 00:09:10,520 Speaker 1: When I look out at the advisor space, very few women, 153 00:09:10,800 --> 00:09:14,679 Speaker 1: even less people of color. It seems like it's even 154 00:09:14,800 --> 00:09:19,160 Speaker 1: worse than the societal wide issues. Is there something specific 155 00:09:19,280 --> 00:09:24,480 Speaker 1: to finance that it just hasn't caught up um with 156 00:09:24,600 --> 00:09:29,480 Speaker 1: the diversity requirements we see in most major companies. Yeah, 157 00:09:29,600 --> 00:09:33,000 Speaker 1: very I'm glad you asked me the question. Obviously there's 158 00:09:33,040 --> 00:09:36,000 Speaker 1: a it's a multi faceted A start with at a 159 00:09:36,040 --> 00:09:38,400 Speaker 1: at a macro level. You know that this is a 160 00:09:38,800 --> 00:09:43,920 Speaker 1: structural challenge. The issue, I know we're specifically talking about diversity. 161 00:09:44,000 --> 00:09:47,240 Speaker 1: When you start thinking about what I'll call the broader 162 00:09:47,320 --> 00:09:51,800 Speaker 1: social injustices that are prevalent. Frankly, I would argue that 163 00:09:51,880 --> 00:09:56,200 Speaker 1: they're very present across the entire social ecosystem. So this 164 00:09:56,360 --> 00:09:59,679 Speaker 1: is not something that's aosyncratic to wealth management, you know, 165 00:09:59,720 --> 00:10:02,480 Speaker 1: whether it's you know, the educational system, housing. The list 166 00:10:02,520 --> 00:10:05,600 Speaker 1: could go, it could go on and on. I'd say, 167 00:10:05,640 --> 00:10:08,079 Speaker 1: within our industry, I think we've got we've had a 168 00:10:08,120 --> 00:10:11,520 Speaker 1: poor history of sourcing talent. I think that we've had 169 00:10:11,760 --> 00:10:17,480 Speaker 1: some long held negative perceptions regarding you have people of 170 00:10:17,520 --> 00:10:20,440 Speaker 1: color and in some instances women. And again this is 171 00:10:20,480 --> 00:10:23,640 Speaker 1: to be clear, this is this more historical context, you know, 172 00:10:23,679 --> 00:10:27,080 Speaker 1: which is contributed to why the results that we have 173 00:10:27,280 --> 00:10:30,560 Speaker 1: today in terms of the representation that you mentioned. Why 174 00:10:30,640 --> 00:10:32,840 Speaker 1: we are what we are is a is a function 175 00:10:32,840 --> 00:10:36,480 Speaker 1: of things that obviously go back essentially generations, and I 176 00:10:36,520 --> 00:10:39,040 Speaker 1: do think we're at a place where, you know, we've 177 00:10:39,080 --> 00:10:42,160 Speaker 1: been talking about, you know, the case of diversity for 178 00:10:42,160 --> 00:10:44,640 Speaker 1: for decades, you know, for the last thirty years, there's 179 00:10:44,640 --> 00:10:48,600 Speaker 1: been plenty of podium fodder around the need to do it, 180 00:10:48,760 --> 00:10:51,319 Speaker 1: like both on the gender front as well as from 181 00:10:51,360 --> 00:10:54,000 Speaker 1: a racial perspective. And now I think we're at a 182 00:10:54,040 --> 00:10:58,400 Speaker 1: place where the level of intentionality that we're seeing across 183 00:10:58,400 --> 00:11:03,200 Speaker 1: the organizations at start to improve. But we've got a 184 00:11:03,240 --> 00:11:05,280 Speaker 1: long way to go. I think, you know, our history 185 00:11:05,280 --> 00:11:08,600 Speaker 1: of hiring talent from within what I would just simply 186 00:11:08,640 --> 00:11:12,920 Speaker 1: describe as you know, common or said more specifically, majority networks, 187 00:11:13,000 --> 00:11:17,160 Speaker 1: whether it's you know, college alma maters, country clubs, you know, 188 00:11:17,240 --> 00:11:20,319 Speaker 1: members of lacrosse teams, and thinks of that nature. Because 189 00:11:20,320 --> 00:11:22,920 Speaker 1: in the final analysis, you know, if I were to 190 00:11:23,080 --> 00:11:27,000 Speaker 1: again disteal this down to a single word, I'd say, 191 00:11:27,040 --> 00:11:29,160 Speaker 1: it's about, you know, trust, right, we tend to hire 192 00:11:29,200 --> 00:11:32,319 Speaker 1: people that we are most comfortable with. So that's a 193 00:11:32,679 --> 00:11:36,359 Speaker 1: at a macro level, very that's kind of how I 194 00:11:36,520 --> 00:11:40,280 Speaker 1: how I think about, you know, the current state of play. 195 00:11:40,360 --> 00:11:42,920 Speaker 1: To be sure, I am hopeful, but when you get 196 00:11:42,920 --> 00:11:48,040 Speaker 1: into the nuances the wealth management business, and this is 197 00:11:48,080 --> 00:11:51,800 Speaker 1: something that obviously you know better than most, You're raising 198 00:11:51,840 --> 00:11:55,160 Speaker 1: money is hard, you know, especially when you are a 199 00:11:55,480 --> 00:11:58,680 Speaker 1: you know, a person of color right where you're trying 200 00:11:58,720 --> 00:12:02,320 Speaker 1: to do this something that's hard for anyone. You're trying 201 00:12:02,320 --> 00:12:04,719 Speaker 1: to do this against a social structure in which the 202 00:12:05,200 --> 00:12:08,880 Speaker 1: wealth pools are not reflective of our population. So the 203 00:12:08,920 --> 00:12:13,080 Speaker 1: African American representation in this country of the population, but 204 00:12:13,160 --> 00:12:17,680 Speaker 1: we hold less than three percent of the wealth. Right, So, 205 00:12:17,800 --> 00:12:22,560 Speaker 1: in the spirit of trying to build and and scale 206 00:12:22,880 --> 00:12:26,600 Speaker 1: a business, you have got to be able to acquire 207 00:12:26,679 --> 00:12:30,640 Speaker 1: clients that don't look like you and and that in 208 00:12:30,679 --> 00:12:34,120 Speaker 1: some respects that defies many of the long held you know, 209 00:12:34,120 --> 00:12:36,720 Speaker 1: sort of beliefs. If you will around, you know a 210 00:12:36,760 --> 00:12:39,440 Speaker 1: lot of investors, a lot of clients, a lot of LPs. 211 00:12:39,480 --> 00:12:41,920 Speaker 1: They like to do business with people who look like 212 00:12:42,040 --> 00:12:45,480 Speaker 1: them or you know, share a lot of the common attributes. 213 00:12:45,559 --> 00:12:49,520 Speaker 1: So I do think that the measure of difficulty for 214 00:12:49,600 --> 00:12:53,680 Speaker 1: people of color is pretty challenging. And the last point 215 00:12:53,679 --> 00:12:56,200 Speaker 1: I'll make various is the religis to women. I think 216 00:12:56,240 --> 00:12:58,640 Speaker 1: that you know, you know, in our business, you know, 217 00:12:58,679 --> 00:13:02,400 Speaker 1: I think that you know, call it, of our advisors 218 00:13:02,440 --> 00:13:05,320 Speaker 1: are our women. And and that's this is one that 219 00:13:05,760 --> 00:13:07,880 Speaker 1: has never made sense to me when you start thinking 220 00:13:07,920 --> 00:13:11,760 Speaker 1: about some of the attributes that most successful advisors have. 221 00:13:12,400 --> 00:13:16,000 Speaker 1: I for one, believe that you know, women in many respects, 222 00:13:16,160 --> 00:13:18,600 Speaker 1: you know, have those attributes and states. But I think 223 00:13:18,880 --> 00:13:21,000 Speaker 1: many of them have had to make you very difficult 224 00:13:21,120 --> 00:13:26,200 Speaker 1: life decisions around obviously raising their families and stepping away 225 00:13:26,200 --> 00:13:28,880 Speaker 1: from the business. I think that there's been a tendency 226 00:13:29,000 --> 00:13:32,840 Speaker 1: to to place women into support roles and service functions 227 00:13:32,960 --> 00:13:36,160 Speaker 1: or what have you, versus seeing them as as having 228 00:13:36,160 --> 00:13:39,520 Speaker 1: the ability to lead their own wealth practices. Now again, 229 00:13:39,760 --> 00:13:42,680 Speaker 1: you know, we're seeing tremendous improvement on that front. Frankly, 230 00:13:42,720 --> 00:13:45,480 Speaker 1: it's an area that I would say I'm most hopeful, 231 00:13:46,040 --> 00:13:47,720 Speaker 1: but we still have a long way to go. I 232 00:13:47,760 --> 00:13:50,120 Speaker 1: have so many questions to throw at you based on 233 00:13:50,320 --> 00:13:54,240 Speaker 1: what you said. First, is there a cause to be 234 00:13:54,320 --> 00:13:58,920 Speaker 1: optimistic that we're seeing a sea change take place? I've 235 00:13:58,960 --> 00:14:03,679 Speaker 1: watched this, Michael, repeatedly over the past let's call it 236 00:14:03,720 --> 00:14:08,559 Speaker 1: thirty years. This is the first time it feels like, hey, 237 00:14:08,640 --> 00:14:13,280 Speaker 1: maybe something might get done. It seems that the public 238 00:14:14,040 --> 00:14:18,400 Speaker 1: has become so much more aware. Used policing as an example, 239 00:14:18,960 --> 00:14:23,760 Speaker 1: I think the average suburban mom was shocked to see 240 00:14:23,760 --> 00:14:29,600 Speaker 1: the reaction of police against peaceful protesters over the past 241 00:14:29,640 --> 00:14:32,080 Speaker 1: couple of months. Maybe this is the little bubble that 242 00:14:32,160 --> 00:14:36,520 Speaker 1: I exist in, but it feels like there's a broader 243 00:14:36,560 --> 00:14:41,200 Speaker 1: awareness of structural issues than I've ever seen in my 244 00:14:41,280 --> 00:14:45,680 Speaker 1: lifetime anyway, or am I just being optimistic about a 245 00:14:45,720 --> 00:14:49,920 Speaker 1: little feel good sensations of the moment. Yeah, like I 246 00:14:49,960 --> 00:14:54,160 Speaker 1: I share your optimism very I do think this time 247 00:14:55,040 --> 00:14:59,840 Speaker 1: is different, and I'm under no false illusions that you know, 248 00:15:00,000 --> 00:15:01,600 Speaker 1: we're going to get too perfect on the other side 249 00:15:01,600 --> 00:15:03,280 Speaker 1: of this, But I do think we've got a real 250 00:15:03,360 --> 00:15:06,720 Speaker 1: shot at at better And the reason I feel that 251 00:15:06,760 --> 00:15:09,560 Speaker 1: way is a couple of things. One, I think just 252 00:15:09,600 --> 00:15:12,080 Speaker 1: given the confluence of events that have taken place in 253 00:15:13,120 --> 00:15:17,800 Speaker 1: I mean, obviously, the COVID pandemic has forced us all 254 00:15:18,120 --> 00:15:21,640 Speaker 1: to you know, into a completely different, you know space, 255 00:15:21,680 --> 00:15:25,800 Speaker 1: So specifically many of us are home working virtually what 256 00:15:25,960 --> 00:15:29,560 Speaker 1: have you. And so when you go back to whether 257 00:15:29,600 --> 00:15:33,000 Speaker 1: it's you know, the George Floyd murder, obviously a lot 258 00:15:33,080 --> 00:15:36,320 Speaker 1: of the news in the narrative around the tragedy around 259 00:15:36,320 --> 00:15:39,040 Speaker 1: Brianna Taylor or mont Aubrey, and the fact that we're 260 00:15:39,080 --> 00:15:43,520 Speaker 1: all home in a world where, you know, the competition 261 00:15:43,560 --> 00:15:46,320 Speaker 1: for mind share is the greatest we've ever seen. But 262 00:15:46,360 --> 00:15:49,040 Speaker 1: I think we've been able to focus on issues in 263 00:15:49,120 --> 00:15:51,480 Speaker 1: a way that we probably wouldn't have before. So that's 264 00:15:51,560 --> 00:15:54,600 Speaker 1: that's one point. The other thing, more importantly, that actually 265 00:15:54,640 --> 00:15:57,080 Speaker 1: hasn't be hopeful. It's just you know, the young people. 266 00:15:57,640 --> 00:16:02,120 Speaker 1: When you look at the demographics of the protesters, it's 267 00:16:02,160 --> 00:16:05,160 Speaker 1: not just you know, Black Americans that are leaning in. 268 00:16:05,240 --> 00:16:07,920 Speaker 1: And I think it's a tremendous amount of representation from 269 00:16:07,920 --> 00:16:11,440 Speaker 1: our majority colleagues and so that ally ship, I think 270 00:16:11,440 --> 00:16:15,080 Speaker 1: it's at a level that, particularly with younger generations, it's 271 00:16:15,080 --> 00:16:18,080 Speaker 1: at a level that we've never seen before. And frankly, 272 00:16:18,120 --> 00:16:20,560 Speaker 1: I think it is the the younger generation that is 273 00:16:20,600 --> 00:16:24,600 Speaker 1: going to demand that things are a tad bit different. 274 00:16:24,720 --> 00:16:28,120 Speaker 1: So I am again I'm not naive about it. It 275 00:16:28,320 --> 00:16:31,480 Speaker 1: change tends to be hard. It always moved slower than 276 00:16:31,560 --> 00:16:35,800 Speaker 1: you ultimately wanted to. And I think folks, you get 277 00:16:35,840 --> 00:16:38,560 Speaker 1: the idea that it's not about you know, these these 278 00:16:38,600 --> 00:16:42,840 Speaker 1: false binary choices of Okay, I support you know, black 279 00:16:42,840 --> 00:16:47,480 Speaker 1: lives matter versus the police. Right, that's that's an oversimplification 280 00:16:47,840 --> 00:16:51,560 Speaker 1: of the issue. You can actually be supportive of of 281 00:16:51,680 --> 00:16:54,280 Speaker 1: both and and and again, I think the majority of 282 00:16:54,320 --> 00:16:56,800 Speaker 1: people get that well. It certainly is the role of 283 00:16:57,000 --> 00:17:01,600 Speaker 1: youth to agitate for change. That's been the historical role. 284 00:17:02,160 --> 00:17:05,040 Speaker 1: If what we are both feeling that this seems to 285 00:17:05,119 --> 00:17:09,040 Speaker 1: be a pivot point, that it is different this time, 286 00:17:09,880 --> 00:17:14,880 Speaker 1: what's the reasonable guess for how long it will be before, 287 00:17:15,280 --> 00:17:18,960 Speaker 1: let's take financial services, how long will it be before 288 00:17:18,960 --> 00:17:25,960 Speaker 1: our industry looks a little bit more like America looks. Yeah, yeah, Look, 289 00:17:26,000 --> 00:17:27,840 Speaker 1: I think it's going back to some of my earlier 290 00:17:27,880 --> 00:17:33,000 Speaker 1: comments around how we got here. It took generations to 291 00:17:33,000 --> 00:17:37,160 Speaker 1: to build the current state state the obvious. It will 292 00:17:37,200 --> 00:17:42,720 Speaker 1: take a sustained commitment on the part of again just 293 00:17:42,800 --> 00:17:46,840 Speaker 1: staying within financial services, around all the corporations that make 294 00:17:46,920 --> 00:17:49,320 Speaker 1: up this great industry that we're privileged to work in, 295 00:17:49,960 --> 00:17:53,000 Speaker 1: to stay focused on this, to stay intentional about it. 296 00:17:53,680 --> 00:17:56,320 Speaker 1: I like to use John F. Kennedy jfk back in 297 00:17:57,280 --> 00:17:59,240 Speaker 1: he made the declaration that we're going to put a 298 00:17:59,280 --> 00:18:02,399 Speaker 1: man on the moon, and that didn't happen until nine nine, right, 299 00:18:02,440 --> 00:18:07,520 Speaker 1: So it clearly is a process. It clearly will take 300 00:18:08,119 --> 00:18:12,360 Speaker 1: a much higher level of accountability, and not just from 301 00:18:12,720 --> 00:18:14,480 Speaker 1: you know, the leadership. I think you know, even from 302 00:18:14,480 --> 00:18:16,960 Speaker 1: our clients. And you're starting to see this, you know, 303 00:18:17,000 --> 00:18:19,000 Speaker 1: Barre as you know, play out in some of the 304 00:18:19,000 --> 00:18:23,879 Speaker 1: institutional circles where institutional clients are now demanding diversity before 305 00:18:23,920 --> 00:18:27,040 Speaker 1: they are willing to do business with you. And I 306 00:18:27,080 --> 00:18:30,399 Speaker 1: think you know, the individual investor, the individual client hasn't 307 00:18:30,480 --> 00:18:33,400 Speaker 1: quite got there yet, but but I'm encouraged that that 308 00:18:33,400 --> 00:18:35,000 Speaker 1: that will be the outcome. And you and I both 309 00:18:35,040 --> 00:18:38,000 Speaker 1: know that there's no better way to turbo charge change 310 00:18:38,040 --> 00:18:42,000 Speaker 1: than when clients start to demand it. So again, I'm optimistic, 311 00:18:42,000 --> 00:18:43,840 Speaker 1: I'm hopeful, but this is going to take a lot 312 00:18:43,840 --> 00:18:45,359 Speaker 1: of work, and it's going to take, you know, a 313 00:18:45,359 --> 00:18:48,520 Speaker 1: great deal of transparency and the appropriate levels of accountability 314 00:18:48,600 --> 00:18:50,879 Speaker 1: to ensure we get to to a better place, and 315 00:18:51,119 --> 00:18:54,720 Speaker 1: I'm hopeful we will. Last thought on this, I think 316 00:18:54,760 --> 00:18:59,520 Speaker 1: people have been genuinely surprised by how much change is 317 00:18:59,600 --> 00:19:06,320 Speaker 1: being forced, not by activists or investors, but by corporations themselves. 318 00:19:06,359 --> 00:19:10,320 Speaker 1: Think about Nike and Colin Kaepernack. Think about what FedEx 319 00:19:10,440 --> 00:19:14,520 Speaker 1: just did with the Washington football team. Is their new name. 320 00:19:14,560 --> 00:19:18,119 Speaker 1: They're no longer using the Washington Redskins. They basically, I 321 00:19:18,359 --> 00:19:21,040 Speaker 1: believe it was FedEx went to management and said, hey, 322 00:19:21,080 --> 00:19:23,640 Speaker 1: if you don't change your name, we're withdrawing our support 323 00:19:24,240 --> 00:19:28,640 Speaker 1: for your team, um and for your stadium. It's kind 324 00:19:28,640 --> 00:19:32,520 Speaker 1: of shocking to see such aggressive leadership. But it's not 325 00:19:32,600 --> 00:19:36,520 Speaker 1: just those two companies. We're seeing that everywhere, so so 326 00:19:36,560 --> 00:19:39,240 Speaker 1: The question I'm leading to is are we going to 327 00:19:39,320 --> 00:19:42,480 Speaker 1: see change come from the grassroots up? Is it going 328 00:19:42,560 --> 00:19:47,399 Speaker 1: to come from the government down, or is corporate America's 329 00:19:47,400 --> 00:19:53,240 Speaker 1: going to play a surprisingly outsized role in fostering change. Yeah, 330 00:19:53,640 --> 00:19:56,720 Speaker 1: that's a great question. Look, I think the throughout this 331 00:19:56,880 --> 00:20:01,000 Speaker 1: our country's history, I think grassroots has always been at 332 00:20:01,000 --> 00:20:05,720 Speaker 1: the center and there, I say the catalysts for for change, right, 333 00:20:05,760 --> 00:20:08,400 Speaker 1: So so I think that that is an evergreen sort 334 00:20:08,400 --> 00:20:12,320 Speaker 1: of reality. But I think what's different now it's less 335 00:20:12,359 --> 00:20:15,480 Speaker 1: about government because you know and I both know the 336 00:20:15,520 --> 00:20:18,119 Speaker 1: state of our politics. You know, I would just simply 337 00:20:18,160 --> 00:20:20,800 Speaker 1: say we've seen better days. I think what's different is 338 00:20:20,840 --> 00:20:24,840 Speaker 1: corporate America. And this goes back to you know, you know, 339 00:20:25,119 --> 00:20:28,399 Speaker 1: I'll just use Milton Freeman as as an example of 340 00:20:29,080 --> 00:20:32,119 Speaker 1: there was a point in time where the paradigm of 341 00:20:32,160 --> 00:20:36,040 Speaker 1: the philosophy was the role of the corporation is singular, right, 342 00:20:36,119 --> 00:20:40,320 Speaker 1: that is, to produce returns for shareholders. And you fast 343 00:20:40,359 --> 00:20:44,000 Speaker 1: forward to I'll just highlight the Business Roundtable, right that's 344 00:20:44,040 --> 00:20:47,840 Speaker 1: made up of prominent CEOs who have come out publicly 345 00:20:47,840 --> 00:20:50,600 Speaker 1: and said that the role of the corporation is beyond 346 00:20:50,720 --> 00:20:53,399 Speaker 1: just you know, shareholders, it's it's our employees, it's the 347 00:20:53,440 --> 00:20:56,320 Speaker 1: communities in which we work and live, and and I 348 00:20:56,359 --> 00:20:59,200 Speaker 1: think you're starting to see corporations, and you gave a 349 00:20:59,200 --> 00:21:02,240 Speaker 1: couple of the great amples you're lean into some of 350 00:21:02,280 --> 00:21:05,639 Speaker 1: these social issues. And I personally have been encouraged by 351 00:21:05,960 --> 00:21:09,320 Speaker 1: some of the public you know, not just the statements, 352 00:21:09,320 --> 00:21:11,560 Speaker 1: but the public actions that we've seen in the wake 353 00:21:11,600 --> 00:21:14,560 Speaker 1: of again the George Floyd's tragedy, which again gives me 354 00:21:14,680 --> 00:21:17,359 Speaker 1: some hope that we can get to better place. And 355 00:21:17,400 --> 00:21:19,639 Speaker 1: so this is something that has to be permeated across 356 00:21:19,720 --> 00:21:23,040 Speaker 1: the entire corporate structure. So from the board of directors, 357 00:21:23,520 --> 00:21:25,960 Speaker 1: you know, CEOs that are running companies. I mean, you 358 00:21:25,960 --> 00:21:27,679 Speaker 1: know and I both know we only have four African 359 00:21:27,720 --> 00:21:30,919 Speaker 1: Americans who are leading companies within the Fortune five hundred. 360 00:21:30,960 --> 00:21:33,000 Speaker 1: But it's also got to be folks within corporations that 361 00:21:33,000 --> 00:21:39,200 Speaker 1: are running businesses, sitting on operating committees, management committees, etcetera, etcetera. 362 00:21:39,280 --> 00:21:40,879 Speaker 1: So I do think we're in a We're at a 363 00:21:40,960 --> 00:21:44,280 Speaker 1: different sort of point in time where, in addition to 364 00:21:44,320 --> 00:21:48,240 Speaker 1: the grassroots movement, I think the corporate America is going 365 00:21:48,280 --> 00:21:51,160 Speaker 1: to do a better job than it has done historically, 366 00:21:51,160 --> 00:21:52,600 Speaker 1: and we're starting to see some of that play out. 367 00:21:53,440 --> 00:21:56,080 Speaker 1: You know, you know, I I know I said last point, 368 00:21:56,119 --> 00:22:00,320 Speaker 1: but I'm fascinated by the topic. The one more lass point. 369 00:22:00,920 --> 00:22:04,560 Speaker 1: If you remember marriage equality and and how much of 370 00:22:04,600 --> 00:22:09,320 Speaker 1: a cultural wedge issue that was for so long. I 371 00:22:09,359 --> 00:22:12,639 Speaker 1: think a lot of change bubbles up beneath the surface 372 00:22:13,400 --> 00:22:17,359 Speaker 1: between the activists on one end and either government or 373 00:22:17,400 --> 00:22:21,760 Speaker 1: corporations on the other. And when that sort of changed, 374 00:22:22,040 --> 00:22:27,440 Speaker 1: when then Vice President Biden sort of pressed then President 375 00:22:27,480 --> 00:22:30,960 Speaker 1: Obama kind of spoke out of school and pushed the 376 00:22:31,000 --> 00:22:34,560 Speaker 1: issue forward almost by accident, the rest of the country 377 00:22:34,640 --> 00:22:39,000 Speaker 1: was surprisingly ready for those changes. I think. I think 378 00:22:39,040 --> 00:22:42,800 Speaker 1: it had slowly been morphing over time, and as you 379 00:22:42,840 --> 00:22:45,800 Speaker 1: said earlier, it was the young people who were driving 380 00:22:45,800 --> 00:22:49,840 Speaker 1: a lot of those changes before it became really just 381 00:22:50,640 --> 00:22:54,959 Speaker 1: you know, the standards and society changes. I wonder if 382 00:22:54,960 --> 00:22:58,560 Speaker 1: we're going to see something similar here that as much 383 00:22:58,600 --> 00:23:00,960 Speaker 1: as this looks like a pivot point, and the concern 384 00:23:01,160 --> 00:23:03,919 Speaker 1: is we've been here before. We thought things would change 385 00:23:04,320 --> 00:23:07,240 Speaker 1: and they didn't, I wonder if this might change sooner 386 00:23:07,280 --> 00:23:10,760 Speaker 1: than we think. Is that overly optimistic or or is 387 00:23:10,800 --> 00:23:15,080 Speaker 1: there any sort of path that leads to a broader 388 00:23:15,119 --> 00:23:21,359 Speaker 1: societal shift more quickly than I think we traditionally expect. Yeah, 389 00:23:21,520 --> 00:23:24,080 Speaker 1: I think it depends on where you sit, and it 390 00:23:24,119 --> 00:23:27,600 Speaker 1: depends on you know, how you're keeping score. I think, 391 00:23:28,160 --> 00:23:30,560 Speaker 1: you know, just coming back to our industry, I think 392 00:23:30,560 --> 00:23:32,560 Speaker 1: one of the areas that you know that it is 393 00:23:32,600 --> 00:23:37,600 Speaker 1: far more controllable and candidly. I think you'll see much 394 00:23:37,640 --> 00:23:40,639 Speaker 1: greater improvement sooner versus later, is you know, start with 395 00:23:40,680 --> 00:23:44,960 Speaker 1: the analysts and the associates, right, So they often used 396 00:23:45,119 --> 00:23:48,240 Speaker 1: funnel analogy right in terms of bringing people into the 397 00:23:48,280 --> 00:23:51,959 Speaker 1: industry and how we recruit kids off of you know, 398 00:23:52,000 --> 00:23:54,240 Speaker 1: college campuses. I think you're already starting to see that 399 00:23:54,280 --> 00:23:57,000 Speaker 1: net widen where the industry used to live. As you 400 00:23:57,080 --> 00:23:59,920 Speaker 1: and I both know you should live at a certain 401 00:24:00,320 --> 00:24:03,320 Speaker 1: almost a fixed level of colleges and universities, because there 402 00:24:03,359 --> 00:24:06,720 Speaker 1: was a view that that's where the best talent, you know, resided. 403 00:24:06,840 --> 00:24:10,359 Speaker 1: I think you're already starting to see corporations or institutions 404 00:24:10,400 --> 00:24:14,760 Speaker 1: get much more sophisticated how they think about sourcing talent. 405 00:24:14,880 --> 00:24:17,000 Speaker 1: So I think at the top of the funnel, you'll 406 00:24:17,040 --> 00:24:21,560 Speaker 1: start to see much greater not just representation of the 407 00:24:21,880 --> 00:24:23,720 Speaker 1: you know, of the country. But I think you'll maybe 408 00:24:23,720 --> 00:24:26,760 Speaker 1: even see organizations over in depth. And so then the 409 00:24:26,920 --> 00:24:30,159 Speaker 1: key then becomes, you know, how do you ensure that 410 00:24:30,200 --> 00:24:33,040 Speaker 1: the funnel isn't leaky right? How do you ensure that 411 00:24:33,080 --> 00:24:36,680 Speaker 1: you retain the talent? And there's a number of tactics, 412 00:24:37,080 --> 00:24:40,240 Speaker 1: whether it's obviously the off to use mentor programs. But 413 00:24:40,280 --> 00:24:41,800 Speaker 1: I think one of the areas that I'd like to 414 00:24:41,840 --> 00:24:45,439 Speaker 1: see quote in America get better at as relates to 415 00:24:45,720 --> 00:24:50,320 Speaker 1: diverse talent is on the sponsorship side. And I think 416 00:24:50,320 --> 00:24:52,880 Speaker 1: to degree we can do that more effectively. I think 417 00:24:52,920 --> 00:24:57,000 Speaker 1: we'll see better, much better outcomes over time. But the 418 00:24:57,040 --> 00:25:01,400 Speaker 1: thing that will take time is gain representation on our 419 00:25:01,440 --> 00:25:05,600 Speaker 1: boards you have, you know, whether it's your government action 420 00:25:05,680 --> 00:25:08,400 Speaker 1: like California where it's starting to you know, where they're 421 00:25:08,400 --> 00:25:10,040 Speaker 1: starting to mandate it. You know, at least as a 422 00:25:10,040 --> 00:25:12,639 Speaker 1: relatially number of women on boards, which I think again 423 00:25:12,720 --> 00:25:15,520 Speaker 1: that that is a positive outcome, But as you write 424 00:25:15,560 --> 00:25:18,240 Speaker 1: to the number of CEOs and folks running businesses, I 425 00:25:18,240 --> 00:25:20,680 Speaker 1: think that that will take some time to say the least, 426 00:25:21,119 --> 00:25:24,439 Speaker 1: let's talk a little bit about what's going on in 427 00:25:24,480 --> 00:25:28,680 Speaker 1: the financial services industry, and you wear a lot of hats. 428 00:25:29,240 --> 00:25:32,639 Speaker 1: So I I like the fact that your perspective is 429 00:25:32,680 --> 00:25:35,960 Speaker 1: so broad, and let me reference a few of those. So, 430 00:25:36,040 --> 00:25:38,480 Speaker 1: not only do you run Private Wealth Management, you're the 431 00:25:38,600 --> 00:25:43,119 Speaker 1: co head of the institutional client Coverage group, Global Sports 432 00:25:43,119 --> 00:25:47,840 Speaker 1: and Entertainment, Family Offices, Resources, International Wealth Management. Is there 433 00:25:47,840 --> 00:25:50,800 Speaker 1: a lot of overlap between those areas or are those 434 00:25:50,880 --> 00:25:56,400 Speaker 1: all very distinct positions. Yeah, it's a it's a great question. 435 00:25:56,600 --> 00:26:00,280 Speaker 1: Very so the portfolio PWM has become a bit of 436 00:26:00,280 --> 00:26:03,080 Speaker 1: a portfolio at Morgan Stanley. You know, obviously you mentioned 437 00:26:03,760 --> 00:26:07,240 Speaker 1: a number of the specialty businesses that are within I'd 438 00:26:07,240 --> 00:26:09,879 Speaker 1: say with p w M, the international wealth business and 439 00:26:09,880 --> 00:26:13,320 Speaker 1: the sports entertainment business are very very u there's some 440 00:26:13,400 --> 00:26:16,320 Speaker 1: common themes that cut across all three of them, and 441 00:26:16,600 --> 00:26:22,200 Speaker 1: that common thread is ultra kind of work individuals, you know, families, foundations, 442 00:26:22,359 --> 00:26:25,919 Speaker 1: and essentially the distinction becomes in the case of the 443 00:26:25,920 --> 00:26:30,200 Speaker 1: international business jurisdiction rights jurisdiction where the where the client 444 00:26:30,280 --> 00:26:33,760 Speaker 1: actually lives, and you know, and more Instanley, we've got 445 00:26:33,800 --> 00:26:37,399 Speaker 1: a fairly robust offshore business, but all of the advisers 446 00:26:37,440 --> 00:26:41,800 Speaker 1: are based here in the US. And the thing that 447 00:26:42,119 --> 00:26:47,399 Speaker 1: made sense to us strategically, is why separate businesses just 448 00:26:47,520 --> 00:26:50,120 Speaker 1: based on where the source of wealth is because as 449 00:26:50,160 --> 00:26:54,480 Speaker 1: you and I know, the issues, the challenges that families 450 00:26:54,520 --> 00:26:58,920 Speaker 1: of affluence are looking to solve frankly are quite similar, 451 00:26:59,119 --> 00:27:01,560 Speaker 1: you know, as you go round around the world. So 452 00:27:01,600 --> 00:27:03,040 Speaker 1: that was that logic. And then the sports and are 453 00:27:03,040 --> 00:27:06,600 Speaker 1: the same. Business is a is a unique segment where 454 00:27:06,920 --> 00:27:09,080 Speaker 1: clearly you have a lot of ultra high net worth 455 00:27:09,880 --> 00:27:13,080 Speaker 1: individuals across all of our professional sports or across the 456 00:27:13,119 --> 00:27:16,719 Speaker 1: industry of of of entertainment. And as we know, right, 457 00:27:16,840 --> 00:27:20,080 Speaker 1: the not only is a source of wealth different the 458 00:27:20,200 --> 00:27:24,320 Speaker 1: duration of income right just given the contractual nature of 459 00:27:24,760 --> 00:27:27,920 Speaker 1: many of those clients are a bit unique. That requires 460 00:27:27,960 --> 00:27:30,640 Speaker 1: a certain amount of expertise, But for pulling those businesses 461 00:27:30,680 --> 00:27:33,360 Speaker 1: together just made a good deal of sense for us. 462 00:27:33,359 --> 00:27:36,920 Speaker 1: And then the institutional client covers business kind of hearkens 463 00:27:36,960 --> 00:27:39,240 Speaker 1: back to my my old days of being in the 464 00:27:39,320 --> 00:27:43,600 Speaker 1: cells and trading business. It is largely execuity, fixed income 465 00:27:43,720 --> 00:27:47,919 Speaker 1: focused on institutional clients. So that's a little bit different. 466 00:27:47,920 --> 00:27:51,560 Speaker 1: But there are pockets of overlap, especially when you're talking 467 00:27:51,560 --> 00:27:54,080 Speaker 1: about the family office. So let's talk a little bit 468 00:27:54,080 --> 00:27:56,919 Speaker 1: about some of the bigger themes we've seen in the 469 00:27:57,000 --> 00:28:00,480 Speaker 1: wealth management business, one has been in a bit of 470 00:28:00,480 --> 00:28:05,000 Speaker 1: a shift from larger wire houses two independent r I 471 00:28:05,160 --> 00:28:08,520 Speaker 1: A s. What are you guys doing too, tracked and 472 00:28:08,600 --> 00:28:13,439 Speaker 1: retain talents in the face of industry wide. It's been 473 00:28:13,480 --> 00:28:17,520 Speaker 1: a pretty broad trend. Yeah, you know, it's interesting and 474 00:28:17,560 --> 00:28:21,240 Speaker 1: I see a lot of reporting on the shift from 475 00:28:22,119 --> 00:28:25,479 Speaker 1: the defection from the wirehouse to the to the independent channel. 476 00:28:26,359 --> 00:28:29,320 Speaker 1: And you know, it's interesting as we as we have 477 00:28:29,440 --> 00:28:33,639 Speaker 1: this conversation very you know more in Stanley, we're having 478 00:28:33,640 --> 00:28:39,560 Speaker 1: our best net recruiting year ever and so said simply, 479 00:28:39,720 --> 00:28:42,640 Speaker 1: you know that it just hasn't been our reality. And 480 00:28:42,680 --> 00:28:46,840 Speaker 1: I don't say that out of arrogance or surely not hubrious, 481 00:28:47,000 --> 00:28:50,920 Speaker 1: but but we have not actually seen a material defection 482 00:28:51,120 --> 00:28:56,760 Speaker 1: of talent going independent. Look, I believe our value proposition 483 00:28:56,960 --> 00:28:59,640 Speaker 1: at our firm is it's obviously our brand, you know, 484 00:28:59,680 --> 00:29:02,480 Speaker 1: eighty five years in the making, and I like to 485 00:29:02,480 --> 00:29:05,440 Speaker 1: believe that that's real currency for advisors out in the marketplace. 486 00:29:05,920 --> 00:29:09,239 Speaker 1: We talk a lot about our platform, how robust it is, 487 00:29:09,440 --> 00:29:13,080 Speaker 1: our scale, which allows us to invest back in the 488 00:29:13,120 --> 00:29:17,040 Speaker 1: business at a level that's not easily replicated in the marketplace, 489 00:29:17,080 --> 00:29:19,720 Speaker 1: and then most importantly, and it's just something I trust 490 00:29:19,720 --> 00:29:24,200 Speaker 1: would resonate with you, is our entrepreneurial culture. Right, our 491 00:29:24,240 --> 00:29:29,360 Speaker 1: advisors have a tremendous amount of flexibility uh to to 492 00:29:29,480 --> 00:29:31,560 Speaker 1: run their business. Of course, there's you know, we have 493 00:29:31,640 --> 00:29:34,840 Speaker 1: our control partners to make sure that everything we do 494 00:29:34,920 --> 00:29:36,560 Speaker 1: is in the spirit of of what's in the best 495 00:29:36,600 --> 00:29:41,000 Speaker 1: interest for clients. But we try to maintain that entrepreneurial 496 00:29:41,040 --> 00:29:44,920 Speaker 1: culture and that flexibility, and so that combined with you know, 497 00:29:45,080 --> 00:29:48,800 Speaker 1: strong local leadership and our branches across the country, our 498 00:29:48,920 --> 00:29:51,320 Speaker 1: leadership senior leadership team, which I'm a part of that, 499 00:29:51,920 --> 00:29:56,520 Speaker 1: but you know Vincivalmia who runs the field, Dany Sapristein 500 00:29:56,520 --> 00:29:58,520 Speaker 1: who runs abroad of business, and we try to be 501 00:29:58,840 --> 00:30:01,880 Speaker 1: fairly proximate to our advisors, right, so they feel like 502 00:30:01,960 --> 00:30:05,960 Speaker 1: it's truly a real partnership. But I I'd say, when 503 00:30:06,080 --> 00:30:12,040 Speaker 1: when you combine world class investment bank, world class investment management, 504 00:30:12,120 --> 00:30:16,240 Speaker 1: world class wealth management, that's extraordinarily open in terms of 505 00:30:16,280 --> 00:30:20,160 Speaker 1: our platform, open architecture, I think that the combination of 506 00:30:20,200 --> 00:30:25,760 Speaker 1: those things has been a real driver of retention UH force. 507 00:30:26,000 --> 00:30:27,880 Speaker 1: And that's not to say again that we don't lose 508 00:30:27,920 --> 00:30:31,280 Speaker 1: talent of course we do, but we're not seeing it 509 00:30:32,160 --> 00:30:34,320 Speaker 1: at such a clip where we would define it as 510 00:30:34,760 --> 00:30:38,880 Speaker 1: a problem quite fascinating them. Let's talk a little bit 511 00:30:39,280 --> 00:30:43,040 Speaker 1: about what clients are looking for these days. There has 512 00:30:43,120 --> 00:30:47,840 Speaker 1: been a huge shift in inflows over the past twenty 513 00:30:47,920 --> 00:30:52,720 Speaker 1: years from the more actively managed portfolios to the more 514 00:30:52,720 --> 00:30:56,800 Speaker 1: passive indexes. How are you seeing this play out with 515 00:30:56,880 --> 00:31:00,880 Speaker 1: your clients and with what people are looking for in 516 00:31:01,040 --> 00:31:04,600 Speaker 1: what's become a very violatile environment. Yeah, as you know, 517 00:31:04,840 --> 00:31:07,400 Speaker 1: and I think about our business, We've got three million 518 00:31:07,680 --> 00:31:11,840 Speaker 1: clients obviously who sit at various levels of the risk spectrum, 519 00:31:12,040 --> 00:31:16,920 Speaker 1: if you will. Clearly, the megatrain towards passive is something 520 00:31:16,960 --> 00:31:20,800 Speaker 1: that's that's impacted the you know, the entire industry. But 521 00:31:20,800 --> 00:31:23,520 Speaker 1: but look, I think that it's also fair to say 522 00:31:23,560 --> 00:31:26,000 Speaker 1: that we still have, particularly when you go up market, 523 00:31:26,400 --> 00:31:31,120 Speaker 1: you still have a huge population of investors who are 524 00:31:31,280 --> 00:31:38,000 Speaker 1: incredibly focused on idiosyncratic driven alpha and and want to 525 00:31:38,080 --> 00:31:42,440 Speaker 1: partake in partner with if you will invest with UH, 526 00:31:42,520 --> 00:31:45,000 Speaker 1: you know, active managers that are out in the marketplace. 527 00:31:45,040 --> 00:31:50,360 Speaker 1: So yeah, BETA has has definitely you know, UH engulfed 528 00:31:50,920 --> 00:31:52,800 Speaker 1: UH the industry. But I think when you get into 529 00:31:52,840 --> 00:31:56,240 Speaker 1: periods like frankly we've experienced this year, you know, having 530 00:31:56,240 --> 00:32:02,080 Speaker 1: those managers who've who have demonstrated a consistent sort of 531 00:32:02,120 --> 00:32:06,360 Speaker 1: track record of delivering set alpha for clients. You know, Frankly, 532 00:32:06,600 --> 00:32:09,120 Speaker 1: you know, I think they're going to continue to win 533 00:32:09,280 --> 00:32:12,040 Speaker 1: in the marketplace. So so, yeah, we've got a lot 534 00:32:12,040 --> 00:32:15,160 Speaker 1: of clients who are you know, doing passive investing, etcetera. 535 00:32:15,160 --> 00:32:18,200 Speaker 1: But they're absolutely complementing that with with the best of 536 00:32:18,280 --> 00:32:21,800 Speaker 1: the best managers out there. Uh makes sense. What about 537 00:32:21,840 --> 00:32:26,800 Speaker 1: E s G investing, Environmental, societal and governance. That seems 538 00:32:26,840 --> 00:32:29,680 Speaker 1: to be something that looks like it's going to become 539 00:32:29,720 --> 00:32:33,360 Speaker 1: more popular each year. But when we track it certainly 540 00:32:33,440 --> 00:32:36,280 Speaker 1: captures a lot of mind share, but when we track 541 00:32:36,440 --> 00:32:40,840 Speaker 1: the flows, it hasn't really done as well as well. 542 00:32:40,840 --> 00:32:44,200 Speaker 1: Certainly not passive, but it seems to be pretty steady 543 00:32:44,200 --> 00:32:47,080 Speaker 1: and not growing well that much. What are you seeing 544 00:32:47,080 --> 00:32:50,600 Speaker 1: in that space? Yeah, look, I I more I said, 545 00:32:50,680 --> 00:32:53,480 Speaker 1: we've been We've been focused on what I just called 546 00:32:53,560 --> 00:32:57,800 Speaker 1: categorically the sustainability effort for some time and we established 547 00:32:57,960 --> 00:33:02,440 Speaker 1: an Institute of Sustainable about ten years ago. Our CEO 548 00:33:02,640 --> 00:33:06,200 Speaker 1: chairs at Audrew Troy, our chief sustainability officer has been 549 00:33:06,280 --> 00:33:09,760 Speaker 1: been leaning on this topic for some time, and this 550 00:33:09,840 --> 00:33:13,360 Speaker 1: is almost very likely diversity conversation that we we had earlier, 551 00:33:13,400 --> 00:33:16,680 Speaker 1: and that's you know, there's been a lot of podium 552 00:33:16,720 --> 00:33:21,280 Speaker 1: fodder around E s G and sustainability for decades, but 553 00:33:21,320 --> 00:33:23,920 Speaker 1: I would say over the last four or five years, 554 00:33:23,960 --> 00:33:29,000 Speaker 1: you're really starting to see change take place, where again, 555 00:33:29,040 --> 00:33:33,920 Speaker 1: I think the thesis around E s G. I think 556 00:33:33,960 --> 00:33:38,680 Speaker 1: that's been fairly compelling, and I think you're starting to 557 00:33:38,720 --> 00:33:40,760 Speaker 1: see and I'll just speak to to my firm in 558 00:33:40,880 --> 00:33:43,520 Speaker 1: terms of just you know, capital flows. You know, we're 559 00:33:43,520 --> 00:33:46,040 Speaker 1: starting to see a meaningful shift, and we're hearing this 560 00:33:46,600 --> 00:33:50,400 Speaker 1: from clients, pretty meaningful. Clients from family offices are starting 561 00:33:50,400 --> 00:33:52,640 Speaker 1: to to talk about it. But when you have a 562 00:33:52,640 --> 00:33:55,840 Speaker 1: firm like black Rock, which obviously is the biggest player 563 00:33:56,080 --> 00:33:58,760 Speaker 1: in the in the asset management space, and Larry think 564 00:33:58,920 --> 00:34:01,640 Speaker 1: is obviously devoted a tremendous amount of his platform to 565 00:34:01,680 --> 00:34:04,240 Speaker 1: the topic, I think that's where you're gonna start to 566 00:34:04,280 --> 00:34:07,560 Speaker 1: see a bit of an acceleration. So the product periferation 567 00:34:07,640 --> 00:34:10,400 Speaker 1: is starting to happen. To your point, the capital flows 568 00:34:11,160 --> 00:34:14,719 Speaker 1: probably not as robust as some other areas, but but 569 00:34:14,760 --> 00:34:16,920 Speaker 1: I think it's coming. I think it's inevitable in my 570 00:34:16,960 --> 00:34:19,920 Speaker 1: own personal view, you know, I don't. I don't disagree 571 00:34:19,960 --> 00:34:23,640 Speaker 1: with that. So I'm calling you from my master bedroom 572 00:34:23,680 --> 00:34:27,160 Speaker 1: at home. You're at home. Most of the country is 573 00:34:27,200 --> 00:34:32,319 Speaker 1: still working in challenging conditions due to the COVID nineteen pandemic. 574 00:34:33,600 --> 00:34:37,160 Speaker 1: What sort of unique challenges have been thrown at you 575 00:34:37,400 --> 00:34:40,719 Speaker 1: running the private wealth management of Morgan Stanley due to 576 00:34:40,760 --> 00:34:44,719 Speaker 1: the lockdown, the pandemic, etcetera. How is this impacting how 577 00:34:44,800 --> 00:34:48,359 Speaker 1: you guys run your business and deal with clients. Yeah? 578 00:34:48,440 --> 00:34:50,799 Speaker 1: I mean if you know, you go back to you know, 579 00:34:51,000 --> 00:34:56,000 Speaker 1: the first second week of March, and if you'd set 580 00:34:56,040 --> 00:35:00,360 Speaker 1: to me that the firm of the businesses gonna go 581 00:35:00,440 --> 00:35:04,439 Speaker 1: completely virtual and everyone who's going to be working from home, 582 00:35:05,480 --> 00:35:09,400 Speaker 1: my reaction to that would have been one of great concerns. 583 00:35:11,120 --> 00:35:14,120 Speaker 1: Fast forward to where we are and today we still 584 00:35:14,160 --> 00:35:18,200 Speaker 1: have over our employees who are working virtually all across 585 00:35:18,200 --> 00:35:21,960 Speaker 1: the country. And when I tell you Barry that the plant, 586 00:35:22,280 --> 00:35:25,479 Speaker 1: while it's been pressure tested, that the plan is doing 587 00:35:25,560 --> 00:35:30,879 Speaker 1: extraordinarily well, I couldnt be you know, frankly, more surprised, 588 00:35:30,920 --> 00:35:36,000 Speaker 1: but said better, more impressed with the level of productivity 589 00:35:36,000 --> 00:35:39,919 Speaker 1: that we've been seeing from from our advisors, from their 590 00:35:39,920 --> 00:35:42,800 Speaker 1: support teams. You know, when you look at the business 591 00:35:43,000 --> 00:35:45,880 Speaker 1: results of the firm obviously announced earnings a couple of 592 00:35:45,960 --> 00:35:49,120 Speaker 1: weeks ago, the firm, not just Women Wealth Management, but 593 00:35:49,200 --> 00:35:52,480 Speaker 1: just across the entire plant perform the firm is performing 594 00:35:53,040 --> 00:35:58,879 Speaker 1: extraordinarily well. Now, obviously underneath those headlines, I mean, there's 595 00:35:58,920 --> 00:36:01,719 Speaker 1: a lot of complexive. You know, we've obviously had to 596 00:36:01,760 --> 00:36:04,759 Speaker 1: go through the heartbreak, like you know, frankly all the 597 00:36:04,840 --> 00:36:08,480 Speaker 1: organizations where you've lost people. We've lost a few employees. 598 00:36:08,560 --> 00:36:11,880 Speaker 1: We've had employees who've lost family members as a result 599 00:36:11,920 --> 00:36:15,279 Speaker 1: of COVID. But even when you have folks who've lost relatives, 600 00:36:15,640 --> 00:36:17,720 Speaker 1: even if it doesn't have anything to do with COVID, 601 00:36:17,760 --> 00:36:20,360 Speaker 1: the fact that we can't grieve the way that we 602 00:36:20,480 --> 00:36:23,720 Speaker 1: used to. There's obviously a great deal of concern around 603 00:36:23,800 --> 00:36:28,400 Speaker 1: just isolation, right, folks being isolated mental health is a 604 00:36:28,440 --> 00:36:30,840 Speaker 1: topic that we're spending a good deal of time on. 605 00:36:30,960 --> 00:36:34,400 Speaker 1: So so, while at a macro level, really pleased with 606 00:36:34,480 --> 00:36:38,399 Speaker 1: how we've been able to perform, clearly it's given how 607 00:36:38,480 --> 00:36:42,000 Speaker 1: unnatural this is. There are some some people related issues 608 00:36:42,040 --> 00:36:45,400 Speaker 1: that that we remain very, very concerned about You know, 609 00:36:45,520 --> 00:36:48,920 Speaker 1: I I totally agree, But you mentioned a key word 610 00:36:49,120 --> 00:36:52,120 Speaker 1: that I think surprised a lot of people to the upside, 611 00:36:52,680 --> 00:36:58,880 Speaker 1: and that's productivity. Given how productive everybody who has the 612 00:36:59,000 --> 00:37:01,919 Speaker 1: luxury of being able to work from home have been, 613 00:37:02,719 --> 00:37:05,640 Speaker 1: what does that mean when we go back to work 614 00:37:05,719 --> 00:37:08,640 Speaker 1: when when fast forward, I'm gonna make up a number, 615 00:37:10,160 --> 00:37:13,560 Speaker 1: there's a vaccine that's hurt immunately, we're going out to 616 00:37:13,760 --> 00:37:17,000 Speaker 1: shows and eating in restaurants and doors. Again, do we 617 00:37:17,160 --> 00:37:20,080 Speaker 1: go back to work and what does that look like? 618 00:37:20,160 --> 00:37:23,440 Speaker 1: Does everybody come back to work or you know, it 619 00:37:23,520 --> 00:37:26,760 Speaker 1: raises a question do we really need to have office 620 00:37:26,800 --> 00:37:30,759 Speaker 1: towers filled with people when so many folks so comfortably 621 00:37:31,280 --> 00:37:36,120 Speaker 1: and so efficiently can get their jobs done at a distance. Well, 622 00:37:36,320 --> 00:37:38,439 Speaker 1: you know, very it's funny when you were talking about 623 00:37:39,120 --> 00:37:41,719 Speaker 1: two and you were you hit on some of the highlights. 624 00:37:41,719 --> 00:37:44,200 Speaker 1: You know, we're at at restaurants, we're going to shows again. 625 00:37:44,400 --> 00:37:47,160 Speaker 1: I will just tell you, partner, I cannot wait for 626 00:37:47,320 --> 00:37:50,799 Speaker 1: that to happen. Like a big smile came on on 627 00:37:50,920 --> 00:37:53,560 Speaker 1: my face because I missed all of that so much. 628 00:37:53,640 --> 00:37:55,520 Speaker 1: And the way we think about it that at morning 629 00:37:55,560 --> 00:37:58,680 Speaker 1: Stanley is we're going to be incredibly responsible in terms 630 00:37:58,680 --> 00:38:01,640 Speaker 1: of how we return to work. And I don't think 631 00:38:01,680 --> 00:38:04,359 Speaker 1: the new world, uh well, we're on the other side 632 00:38:04,360 --> 00:38:06,719 Speaker 1: of this goes back to the old world. I think 633 00:38:06,760 --> 00:38:09,040 Speaker 1: it's it's not going to be this bin area of 634 00:38:09,120 --> 00:38:10,839 Speaker 1: you know, do our work in the office or do 635 00:38:10,880 --> 00:38:13,120 Speaker 1: our work remotely. I think it's going to be both. 636 00:38:13,280 --> 00:38:16,840 Speaker 1: I think we've proven that the added flexibility of folks 637 00:38:16,920 --> 00:38:20,600 Speaker 1: being able to work virtually is an asset for us, 638 00:38:20,600 --> 00:38:22,520 Speaker 1: and so I do think that that's going to forever 639 00:38:22,640 --> 00:38:26,440 Speaker 1: be a part of our workplace strategy going forward. But 640 00:38:26,440 --> 00:38:28,960 Speaker 1: I also think, you know, again, just speaking for my firm, 641 00:38:29,120 --> 00:38:33,560 Speaker 1: I think that we understand the importance of community and 642 00:38:33,800 --> 00:38:38,600 Speaker 1: culture and having our folks together will always be a 643 00:38:38,680 --> 00:38:41,680 Speaker 1: key part of our d NA, you know if you will. So, 644 00:38:41,960 --> 00:38:46,480 Speaker 1: I don't anticipate any material downshift in our real estate 645 00:38:46,600 --> 00:38:50,200 Speaker 1: sack could be fair, but can you maintain your your 646 00:38:50,200 --> 00:38:54,839 Speaker 1: office space presence, but but also make sure that your employees, 647 00:38:54,920 --> 00:38:58,000 Speaker 1: when and where appropriate, have the flexibility to work remotely 648 00:38:58,120 --> 00:39:01,319 Speaker 1: when necessary apps little and so that's where I think 649 00:39:01,640 --> 00:39:04,120 Speaker 1: will land. But I also will will highlight you know, 650 00:39:04,200 --> 00:39:08,000 Speaker 1: another big positive very of of the virtual world, no one, 651 00:39:08,000 --> 00:39:12,520 Speaker 1: our clients. We've seen just a massive uptake in um 652 00:39:12,560 --> 00:39:17,160 Speaker 1: what I would just simply call the digicization of our 653 00:39:17,200 --> 00:39:21,440 Speaker 1: wealth management business. And the fact that clients are now 654 00:39:21,600 --> 00:39:25,279 Speaker 1: comfortable with you meeting with their advisor over zoom is 655 00:39:25,280 --> 00:39:27,239 Speaker 1: going to be a big benefit to us. You know, 656 00:39:27,239 --> 00:39:30,880 Speaker 1: we've got support teams resources that support our advisors. Like 657 00:39:31,000 --> 00:39:36,080 Speaker 1: if you think about our estate planning specialists or philanthropy specialists, 658 00:39:36,120 --> 00:39:38,400 Speaker 1: where they're they're jumping on planes all the time and 659 00:39:38,440 --> 00:39:40,840 Speaker 1: trying to go meet with advisors and go meet with clients. 660 00:39:41,160 --> 00:39:42,640 Speaker 1: We're gonna be able to be a heck of a 661 00:39:42,640 --> 00:39:45,279 Speaker 1: lot more efficient in terms of how we collaborate and 662 00:39:45,320 --> 00:39:49,320 Speaker 1: how we deliver resources to advisors and clients because again, 663 00:39:49,360 --> 00:39:52,680 Speaker 1: we're now all so much more comfortable at video conferencing. 664 00:39:52,800 --> 00:39:54,279 Speaker 1: So I think that there's gonna be a lot of 665 00:39:54,560 --> 00:39:58,399 Speaker 1: positive things from the work from home world that will 666 00:39:58,440 --> 00:40:03,160 Speaker 1: ultimurely make its way to the old world, if you will. 667 00:40:03,280 --> 00:40:06,880 Speaker 1: That will make for a much better uh working binders 668 00:40:06,920 --> 00:40:11,840 Speaker 1: for advisors, for clients, etcetera. Yeah, I agree, and probably 669 00:40:11,840 --> 00:40:14,480 Speaker 1: with a higher quality of life if you're spending less 670 00:40:14,760 --> 00:40:18,600 Speaker 1: time in airports and hotels, especially if you have young 671 00:40:18,680 --> 00:40:21,560 Speaker 1: kids or a family. You mentioned clients. Let me throw 672 00:40:21,600 --> 00:40:26,280 Speaker 1: a few questions to you about some clients. First of all, 673 00:40:26,719 --> 00:40:29,799 Speaker 1: what are you hearing from your clients about the economy. 674 00:40:30,200 --> 00:40:33,720 Speaker 1: I know, the single biggest question I've been hearing lately 675 00:40:33,840 --> 00:40:36,880 Speaker 1: is has the stock market gone crazy? How is it 676 00:40:36,960 --> 00:40:40,800 Speaker 1: decoupled so totally from the economy. What are you hearing 677 00:40:40,840 --> 00:40:44,360 Speaker 1: from clients? Yeah, you know, but that's definitely one of 678 00:40:44,600 --> 00:40:49,960 Speaker 1: the main themes, the dichotomy of what's happening in the 679 00:40:50,000 --> 00:40:53,280 Speaker 1: markets right where we are literally sitting back at historic 680 00:40:53,360 --> 00:40:57,319 Speaker 1: hives from you know, the the underlying economy, and we 681 00:40:57,360 --> 00:41:01,040 Speaker 1: know where we are with with unemployment and the state 682 00:41:01,120 --> 00:41:05,799 Speaker 1: of small business, etcetera across the country. So so we 683 00:41:05,800 --> 00:41:07,840 Speaker 1: see a couple of things. Number one, you know, cast 684 00:41:07,840 --> 00:41:12,000 Speaker 1: positions have absolutely jumped. I think our cast position that 685 00:41:12,160 --> 00:41:15,080 Speaker 1: in private wealth is up from where it was just 686 00:41:15,160 --> 00:41:17,160 Speaker 1: a year ago. And I think you can think about 687 00:41:17,200 --> 00:41:20,680 Speaker 1: that in both defensive and offensive ways. So defensively, you've 688 00:41:20,719 --> 00:41:23,640 Speaker 1: got some folks who don't believe the hype, right they 689 00:41:23,680 --> 00:41:27,520 Speaker 1: believe we've come back way too fast and the underlying 690 00:41:27,560 --> 00:41:31,200 Speaker 1: fundamentals don't support it. Now at the macro level Morgan Stanley. 691 00:41:31,280 --> 00:41:34,760 Speaker 1: Our research team has been calling for a V shape recovery. 692 00:41:34,840 --> 00:41:38,000 Speaker 1: But even within that that thesis, I don't I don't 693 00:41:38,040 --> 00:41:40,680 Speaker 1: know if we were necessarily envisioned the markets being you know, 694 00:41:40,719 --> 00:41:43,239 Speaker 1: have snapped back as qutly as they have, and so 695 00:41:43,320 --> 00:41:45,560 Speaker 1: I do think that there's a good deal of caution 696 00:41:46,080 --> 00:41:47,680 Speaker 1: on a part of many of our clients. So so 697 00:41:47,760 --> 00:41:50,759 Speaker 1: many of them have raised cash because again it's just 698 00:41:50,840 --> 00:41:54,359 Speaker 1: defensive posturing. Now the other side of that is you've 699 00:41:54,400 --> 00:41:58,000 Speaker 1: got clients who are playing offense here and so they've 700 00:41:58,040 --> 00:42:00,319 Speaker 1: raised cast because they want to actually you know, have 701 00:42:00,480 --> 00:42:02,520 Speaker 1: how to drive to take advantage of some of the 702 00:42:02,600 --> 00:42:06,120 Speaker 1: math dislocations that we've seen in the markets. And so 703 00:42:06,200 --> 00:42:08,000 Speaker 1: some of that will take place obviously in the private 704 00:42:08,040 --> 00:42:10,640 Speaker 1: equity market. Some of that will take place obviously in 705 00:42:10,680 --> 00:42:12,960 Speaker 1: growth equity or adventure. But some of that is this, 706 00:42:13,080 --> 00:42:18,279 Speaker 1: you know, taken advantage of dislocations that exist in and 707 00:42:18,360 --> 00:42:20,000 Speaker 1: what I was just simply called, you know, a regular 708 00:42:20,000 --> 00:42:22,600 Speaker 1: way you know, sort of equity business. So so you've 709 00:42:22,600 --> 00:42:24,799 Speaker 1: got that that happening. So that's one thing. The other 710 00:42:25,320 --> 00:42:28,120 Speaker 1: thing that we're seeing on a path of clients is 711 00:42:28,320 --> 00:42:32,880 Speaker 1: I mentioned this earlier. The estate planning engagement is just 712 00:42:33,040 --> 00:42:36,360 Speaker 1: on fire right clients, you know, whether it's you know, 713 00:42:36,440 --> 00:42:38,680 Speaker 1: around taxes, and maybe that has something to do with 714 00:42:38,760 --> 00:42:40,880 Speaker 1: the factive word in an election year and folks are 715 00:42:40,920 --> 00:42:44,799 Speaker 1: starting to reposition. But I think more importantly, given the 716 00:42:44,840 --> 00:42:48,400 Speaker 1: devastation that we've seen, going back to COVID for a second, 717 00:42:48,600 --> 00:42:53,080 Speaker 1: I think that folks, particularly multigenerational families are really taking 718 00:42:53,120 --> 00:42:56,160 Speaker 1: a long hard look at the various structures that are 719 00:42:56,200 --> 00:42:59,880 Speaker 1: housing their assets. Uh, and there are they are as engaged. 720 00:43:00,160 --> 00:43:02,960 Speaker 1: And maybe again maybe because we're all home now, there 721 00:43:03,040 --> 00:43:05,239 Speaker 1: is engaged and is focused on some of these more 722 00:43:05,280 --> 00:43:08,880 Speaker 1: emotional things than act seen surely since I've been running 723 00:43:09,120 --> 00:43:12,360 Speaker 1: the business. So looking at grass as an example, just 724 00:43:12,480 --> 00:43:15,759 Speaker 1: given where obviously where interest rates are just just one 725 00:43:16,400 --> 00:43:19,399 Speaker 1: example sets the second thing and the third thing is 726 00:43:19,600 --> 00:43:21,319 Speaker 1: and maybe this is just a function of where interest 727 00:43:21,400 --> 00:43:23,680 Speaker 1: rates are, you know a great deal of activity on 728 00:43:23,719 --> 00:43:25,759 Speaker 1: the other side of the balance sheet, on the liability 729 00:43:25,800 --> 00:43:29,160 Speaker 1: side of the balance sheet, where aldohindah Worth clients are 730 00:43:29,160 --> 00:43:34,360 Speaker 1: borrowing at a level that is far faster, much faster 731 00:43:34,520 --> 00:43:38,080 Speaker 1: than than any of our other segments. And so so 732 00:43:38,200 --> 00:43:41,719 Speaker 1: the demands or the the the appetite for capital is 733 00:43:42,120 --> 00:43:45,680 Speaker 1: definitely very much alive. And well, yeah, it wouldn't surprise me. 734 00:43:45,760 --> 00:43:47,920 Speaker 1: What why sell an asset if you don't want to 735 00:43:48,600 --> 00:43:52,319 Speaker 1: when cash is practically free? I think was it two 736 00:43:52,320 --> 00:43:55,840 Speaker 1: weeks ago mortgage rates hit their lowest level ever. That 737 00:43:56,080 --> 00:44:00,439 Speaker 1: that's some some incredible data. So you mentioned not only 738 00:44:00,440 --> 00:44:05,200 Speaker 1: the defensive move to cash, but also the offensive move 739 00:44:05,280 --> 00:44:08,239 Speaker 1: to cash. It raises a question, do you hear from 740 00:44:08,280 --> 00:44:14,480 Speaker 1: clients concerned about market valuation? Is the sensation stocks have 741 00:44:14,560 --> 00:44:17,440 Speaker 1: run too far, too fast off the lows, But what 742 00:44:17,600 --> 00:44:21,000 Speaker 1: sort of valuation pushback are you getting these days? Yeah? 743 00:44:21,040 --> 00:44:23,520 Speaker 1: I think that you know, that's a debate that's playing out, 744 00:44:23,520 --> 00:44:25,239 Speaker 1: and that's the beauty of markets. As year and I 745 00:44:25,280 --> 00:44:27,839 Speaker 1: both know there's a bit and there there's an ask. 746 00:44:27,960 --> 00:44:29,800 Speaker 1: But you've you've got you know, some clients and me, 747 00:44:29,880 --> 00:44:32,319 Speaker 1: look at what we're seeing on the metals front. Look 748 00:44:32,360 --> 00:44:35,960 Speaker 1: at what's happening with gold. Right, you've got some clients 749 00:44:35,960 --> 00:44:38,520 Speaker 1: who are not as I said earlier, they don't believe 750 00:44:38,520 --> 00:44:42,399 Speaker 1: the hype and they believe that a material correction could 751 00:44:42,400 --> 00:44:45,000 Speaker 1: be in the offing. Now you've got the other school 752 00:44:45,040 --> 00:44:47,440 Speaker 1: of thought, right, that's you know, the long held true 753 00:44:48,040 --> 00:44:50,319 Speaker 1: since the truth, but the long held view of don't 754 00:44:50,360 --> 00:44:53,760 Speaker 1: fight to fit and just the extraordinary amount of stimulus 755 00:44:53,760 --> 00:44:56,880 Speaker 1: that we've seen obviously from central banks around the world, 756 00:44:56,920 --> 00:44:59,839 Speaker 1: and then obviously from a fiscal policy perspective, obviously con 757 00:45:00,080 --> 00:45:02,920 Speaker 1: risks and in the White House are in the throes 758 00:45:02,960 --> 00:45:05,680 Speaker 1: of debating, you know, the next round and the next leg. 759 00:45:05,760 --> 00:45:07,200 Speaker 1: But when you take a step back, as you know, 760 00:45:07,280 --> 00:45:09,239 Speaker 1: not both knowping in this business for as long as 761 00:45:09,280 --> 00:45:12,520 Speaker 1: we have, I mean, the action is unlike anything that 762 00:45:12,960 --> 00:45:14,800 Speaker 1: not just the action, but the speed of the action 763 00:45:14,920 --> 00:45:18,040 Speaker 1: is unlike anything we've ever seen before. And so the 764 00:45:18,080 --> 00:45:21,680 Speaker 1: debate is the irrespective of the underlying fundamentals. Are we 765 00:45:21,760 --> 00:45:24,120 Speaker 1: at a place now where there's so much money floating 766 00:45:24,160 --> 00:45:27,440 Speaker 1: around our system that you know, markets will continue to 767 00:45:27,640 --> 00:45:30,879 Speaker 1: their perpetual move higher. But that's a debate that's playing out. 768 00:45:30,880 --> 00:45:33,800 Speaker 1: But you've got some clients who are you know, basically 769 00:45:33,800 --> 00:45:38,239 Speaker 1: taking risk off the table, leveraging structure products. You've got 770 00:45:38,239 --> 00:45:40,959 Speaker 1: some folks who again are putting a ton of money 771 00:45:41,160 --> 00:45:45,360 Speaker 1: in uh in gold and other precious metal instruments because 772 00:45:45,680 --> 00:45:47,279 Speaker 1: again they think that you know, there's going to be 773 00:45:47,320 --> 00:45:51,120 Speaker 1: this unleashing of inflation at some point and the market 774 00:45:51,200 --> 00:45:55,120 Speaker 1: is going to going to some significant downturn. But yeah, 775 00:45:55,160 --> 00:45:58,400 Speaker 1: that's the life we've chosen, partner, as you know, to 776 00:45:58,440 --> 00:46:03,280 Speaker 1: say the least. Last client question, are you getting any 777 00:46:03,360 --> 00:46:08,520 Speaker 1: concerns or questions about the upcoming election? We heard a 778 00:46:08,560 --> 00:46:12,960 Speaker 1: ton of stuff heading into and right after the election. 779 00:46:13,760 --> 00:46:16,560 Speaker 1: It's been a little quieter this time around from what 780 00:46:16,640 --> 00:46:19,000 Speaker 1: I'm hearing. I'm curious as to what you guys are hearing. 781 00:46:20,760 --> 00:46:23,239 Speaker 1: I think it's uh, you know, it depends to start with, 782 00:46:23,320 --> 00:46:26,480 Speaker 1: you know where on the political you know spectrum you said. 783 00:46:26,520 --> 00:46:30,839 Speaker 1: I mean, ultimately, it's been relatively quiet, and I think 784 00:46:30,840 --> 00:46:35,520 Speaker 1: that's true even with with institutional investors. But now we're 785 00:46:35,560 --> 00:46:38,160 Speaker 1: getting close. But it's surely when we get on the 786 00:46:38,160 --> 00:46:40,680 Speaker 1: other side of Labor Day. I think that the election 787 00:46:40,760 --> 00:46:44,600 Speaker 1: will clearly dominate the markets and will dominate mind share 788 00:46:44,840 --> 00:46:47,800 Speaker 1: for reasons. And let me just let me just clarify, Amanda, 789 00:46:47,920 --> 00:46:51,480 Speaker 1: let me just I'm starting interrupt. Let me just clarify. 790 00:46:51,960 --> 00:46:55,719 Speaker 1: I don't mean what are people asking about who you 791 00:46:55,719 --> 00:46:57,360 Speaker 1: think is gonna win, or what's going to happen in 792 00:46:57,360 --> 00:47:01,160 Speaker 1: the center or anything like that. I mean specific Hey, 793 00:47:01,200 --> 00:47:03,840 Speaker 1: what happens if there's a major shift. If there's a 794 00:47:03,840 --> 00:47:07,239 Speaker 1: blue wave and the Senate flips and Biden wins, what 795 00:47:07,320 --> 00:47:09,200 Speaker 1: does that mean from my taxes? What does that mean 796 00:47:09,200 --> 00:47:12,800 Speaker 1: for my portfolio? That's right, That's right. Yeah, Now, I 797 00:47:12,840 --> 00:47:14,719 Speaker 1: think that that's exactly where I was going. I think, 798 00:47:14,840 --> 00:47:17,520 Speaker 1: you know, there's if THEE and I both noticed if 799 00:47:17,560 --> 00:47:20,799 Speaker 1: you look at the you know, the history of the 800 00:47:20,840 --> 00:47:23,520 Speaker 1: irrespective of who's in the White House and and almost 801 00:47:23,600 --> 00:47:27,360 Speaker 1: in some respects there respective of who's you know, dominating Congress, 802 00:47:27,440 --> 00:47:30,200 Speaker 1: that that the performance in the markets, right are are 803 00:47:30,200 --> 00:47:34,319 Speaker 1: far more similar than I think most people believe. But 804 00:47:34,360 --> 00:47:38,520 Speaker 1: where I was going was we've not seen what I 805 00:47:38,520 --> 00:47:43,719 Speaker 1: would describe as material movement of capital or you know, 806 00:47:43,880 --> 00:47:48,239 Speaker 1: just simply say, you know, asset class repositioning where you know, 807 00:47:48,320 --> 00:47:52,480 Speaker 1: you feel like there's a link to perspective or potential 808 00:47:52,480 --> 00:47:56,319 Speaker 1: outcomes from the election. But what we have seen is 809 00:47:56,640 --> 00:47:59,680 Speaker 1: amongst some of our multi generational families that I talked 810 00:47:59,680 --> 00:48:02,799 Speaker 1: a lot of about a state planning where folks are 811 00:48:03,560 --> 00:48:09,200 Speaker 1: becoming increasingly sensitive to tax policy. Right. So so that's 812 00:48:09,280 --> 00:48:12,120 Speaker 1: one where uh, you know, it's pretty intuitive to me 813 00:48:12,960 --> 00:48:15,840 Speaker 1: if one is assuming it's just called it a Biden 814 00:48:15,880 --> 00:48:19,440 Speaker 1: presidency in assuming that taxes are going higher, you know, 815 00:48:19,480 --> 00:48:22,959 Speaker 1: we have started to see against still relatively early days, 816 00:48:23,000 --> 00:48:25,000 Speaker 1: families start to get a little bit more concerned and 817 00:48:25,080 --> 00:48:29,320 Speaker 1: focused on That makes sense. And our last question about 818 00:48:29,360 --> 00:48:33,640 Speaker 1: the industry, we see some of the real tech driven startups, 819 00:48:33,719 --> 00:48:36,840 Speaker 1: apps like robin Hoods that are popular amongst the younger 820 00:48:36,920 --> 00:48:41,919 Speaker 1: day traders, or platforms like Betterments that are using algorithms 821 00:48:41,920 --> 00:48:46,160 Speaker 1: to manage portfolios. Where do you see the future of 822 00:48:46,239 --> 00:48:50,680 Speaker 1: technology going. Is it something that's going to replace advisors 823 00:48:50,760 --> 00:48:53,080 Speaker 1: or is it going to be a supplement and a 824 00:48:53,120 --> 00:48:58,160 Speaker 1: tool used by advisors. Yeah, it's I'm really glad you 825 00:48:58,680 --> 00:49:01,920 Speaker 1: Yeah you asked me this question, and Barry, because I 826 00:49:02,360 --> 00:49:09,040 Speaker 1: think the there's this assumption right that the incumbent firms 827 00:49:09,320 --> 00:49:14,560 Speaker 1: at risk of being disrupted and clearly whether it's Betterment 828 00:49:14,680 --> 00:49:16,960 Speaker 1: or robin Hood, and there's some some great what I 829 00:49:16,960 --> 00:49:20,360 Speaker 1: would call digital natives that have come to market that 830 00:49:20,480 --> 00:49:25,160 Speaker 1: that frankly I think are healthy for the industry. And 831 00:49:25,440 --> 00:49:27,640 Speaker 1: before I get more specific, I will say that I 832 00:49:27,680 --> 00:49:31,839 Speaker 1: think the beauty of the digital natives, as I call them, 833 00:49:32,080 --> 00:49:35,919 Speaker 1: is I think that it's forced um incumbent our firm 834 00:49:36,000 --> 00:49:40,200 Speaker 1: included right to turbocharge, the shift from a paper print 835 00:49:40,239 --> 00:49:43,480 Speaker 1: fact ecosystem to a largely digital one. So I think 836 00:49:43,480 --> 00:49:47,240 Speaker 1: that that's been one of the more pronounced implications of 837 00:49:47,280 --> 00:49:52,120 Speaker 1: these digital platforms that have emerged. But but but I'm 838 00:49:52,200 --> 00:49:55,680 Speaker 1: going to be direct about this. I'd say that folks 839 00:49:55,680 --> 00:49:58,319 Speaker 1: assume we're going to be disrupted, and we actually have 840 00:49:58,440 --> 00:50:01,960 Speaker 1: the view that given again as I said earlier, our brand, 841 00:50:02,280 --> 00:50:06,319 Speaker 1: our size, our scale, that we can actually be the 842 00:50:06,400 --> 00:50:11,279 Speaker 1: disrupt or of of the industry, and our base view 843 00:50:11,719 --> 00:50:13,839 Speaker 1: in terms of the future state is that it's not 844 00:50:14,200 --> 00:50:17,680 Speaker 1: a man woman versus machine, right. We actually think it's 845 00:50:17,680 --> 00:50:20,160 Speaker 1: going to be man woman plus machine. Right. So that's 846 00:50:20,160 --> 00:50:23,840 Speaker 1: the bet that we are making. And so having world 847 00:50:23,840 --> 00:50:28,319 Speaker 1: class talent with world class technology, we believe that we're 848 00:50:28,360 --> 00:50:32,120 Speaker 1: going to be in position to dominate. Right. And so ultimately, 849 00:50:32,520 --> 00:50:34,279 Speaker 1: because we're big does not mean that we're going to 850 00:50:34,320 --> 00:50:36,480 Speaker 1: be clunky and slow. We think we're going to be 851 00:50:36,560 --> 00:50:41,040 Speaker 1: superinformed and uh and have the ability to respond to 852 00:50:41,160 --> 00:50:44,600 Speaker 1: forces early on. Right, So these disruptive forces that tend 853 00:50:44,640 --> 00:50:47,359 Speaker 1: to captivate us. And so the thing that I would say, 854 00:50:47,520 --> 00:50:52,040 Speaker 1: you're Barry, that has has been a key part of 855 00:50:52,080 --> 00:50:54,080 Speaker 1: our strategy of the last couple of years. Is that 856 00:50:54,160 --> 00:50:55,840 Speaker 1: there was a time where if you want to do 857 00:50:55,880 --> 00:50:58,640 Speaker 1: wealth management with Morgan Stanley, going back to our origins 858 00:50:59,120 --> 00:51:03,480 Speaker 1: in the Wealth Business Acting seventy seven, we only dealt 859 00:51:03,520 --> 00:51:05,839 Speaker 1: with what we're you know, my business right the ultra 860 00:51:05,920 --> 00:51:09,680 Speaker 1: high networks. So PWM was the only offering, and I'd 861 00:51:09,680 --> 00:51:12,320 Speaker 1: like to use the analogy of BMW. You know, BMW 862 00:51:12,480 --> 00:51:15,319 Speaker 1: makes the ultimate driving machine. There was a time when 863 00:51:15,360 --> 00:51:19,640 Speaker 1: more instantly only sold seven series. But our strategies evolved 864 00:51:19,719 --> 00:51:22,080 Speaker 1: over the last number of years and where you know, 865 00:51:22,120 --> 00:51:23,840 Speaker 1: whether it's our digit if you want to engage with 866 00:51:23,960 --> 00:51:26,799 Speaker 1: us digital in a digital way only, we've got you know, 867 00:51:27,040 --> 00:51:31,240 Speaker 1: a Globo platform. If you want access to a person 868 00:51:31,440 --> 00:51:34,720 Speaker 1: but you know, don't necessarily need a dedicated financial advisor, 869 00:51:34,760 --> 00:51:37,560 Speaker 1: we've got a virtual advisor offering. And then obviously if 870 00:51:37,560 --> 00:51:39,680 Speaker 1: you want to engage with us you know via one 871 00:51:39,680 --> 00:51:41,640 Speaker 1: of our world class teams that that's an area that 872 00:51:41,719 --> 00:51:44,680 Speaker 1: we've always been specialized in that space. So we now 873 00:51:44,719 --> 00:51:47,399 Speaker 1: sell three series, we sell five series, and we also 874 00:51:47,480 --> 00:51:50,719 Speaker 1: sell seven series, and so at the heart of in 875 00:51:50,800 --> 00:51:53,120 Speaker 1: terms of meeting clients where they are, you know, whether 876 00:51:53,120 --> 00:51:56,239 Speaker 1: it's you know, direct to client Obviously, the e Trade acquisition, 877 00:51:56,320 --> 00:51:58,800 Speaker 1: which you know about, is something that we think is 878 00:51:58,840 --> 00:52:02,239 Speaker 1: going to be a real competitive advantage for us, not 879 00:52:02,360 --> 00:52:04,719 Speaker 1: just in terms of just the DTC, but just the 880 00:52:04,800 --> 00:52:07,359 Speaker 1: technology that they're going to bring to bear. I mean, 881 00:52:07,400 --> 00:52:09,600 Speaker 1: there's been this broader workplace strategy, like we think that 882 00:52:09,640 --> 00:52:12,560 Speaker 1: that's going to be the next frontier of winning clients, 883 00:52:12,960 --> 00:52:16,319 Speaker 1: if you will, is going to companies and sitting down 884 00:52:16,360 --> 00:52:19,680 Speaker 1: with chief human resource officers and helping them grapple with 885 00:52:20,200 --> 00:52:22,680 Speaker 1: you know, one of the great stressors that their employees have, 886 00:52:22,800 --> 00:52:25,640 Speaker 1: and that's obviously their financial wellness. And so so it's 887 00:52:25,680 --> 00:52:28,680 Speaker 1: just comprehensives three sixties strategy that we have that we 888 00:52:28,760 --> 00:52:31,879 Speaker 1: think it's going to help us be um I met 889 00:52:31,880 --> 00:52:35,399 Speaker 1: winner not just in current state but future state. Well, well, 890 00:52:35,440 --> 00:52:37,759 Speaker 1: I certainly do love a good car reference when we're 891 00:52:37,840 --> 00:52:41,560 Speaker 1: referring to financial I know I only have you for 892 00:52:41,600 --> 00:52:44,440 Speaker 1: a few more minutes. So before we let you go, 893 00:52:44,719 --> 00:52:48,000 Speaker 1: let's jump to our speed rounds and our favorite five 894 00:52:48,080 --> 00:52:51,479 Speaker 1: questions that we ask all of our guests. Let's jump 895 00:52:51,560 --> 00:52:54,120 Speaker 1: right into it. Tell us what you're streaming these days. 896 00:52:54,200 --> 00:52:57,759 Speaker 1: Give us your favorite either Netflix or Amazon or any 897 00:52:57,800 --> 00:53:00,200 Speaker 1: podcast you might be listening to what What's Key? Can 898 00:53:00,239 --> 00:53:04,920 Speaker 1: you entertained during lockdown? Yeah? Sure, when my wife and 899 00:53:04,960 --> 00:53:07,759 Speaker 1: I can take control of our television and we're not 900 00:53:07,760 --> 00:53:10,840 Speaker 1: watching Frozen two or Laddin. You know that our our 901 00:53:10,960 --> 00:53:13,319 Speaker 1: girls love to watch. I'd say it's a couple of things. 902 00:53:13,400 --> 00:53:17,000 Speaker 1: Number one being a Chicago kid. Of course, the Last Dance, 903 00:53:17,080 --> 00:53:22,279 Speaker 1: you know, the the Jordan era amazing, you know now 904 00:53:22,400 --> 00:53:26,080 Speaker 1: the second you want to go dark? Ozarks is definitely 905 00:53:26,120 --> 00:53:29,720 Speaker 1: a show that we'll keep you in. Pretty good suspense Billions. 906 00:53:29,719 --> 00:53:32,360 Speaker 1: I don't think it's as popular as it was, but 907 00:53:32,440 --> 00:53:35,520 Speaker 1: I'm still very much, you know, watching Billions. There's a 908 00:53:35,560 --> 00:53:37,880 Speaker 1: new show that that my wife turned me on too, 909 00:53:38,040 --> 00:53:42,080 Speaker 1: and actually Andy sapristein who runs a business, have been 910 00:53:42,080 --> 00:53:45,040 Speaker 1: talking about money. Heist is another Netflix gym that I'm 911 00:53:45,080 --> 00:53:47,759 Speaker 1: just starting to get into. And then lastly, my wife 912 00:53:47,840 --> 00:53:50,719 Speaker 1: and I we have one of our girls is artistic, 913 00:53:51,040 --> 00:53:53,759 Speaker 1: beautiful daughter Jaden. And there's a show on Netflix that 914 00:53:53,800 --> 00:53:56,480 Speaker 1: we love called a Typical. So so those are the 915 00:53:56,600 --> 00:53:58,640 Speaker 1: those are the shows that that jump out at me 916 00:53:58,640 --> 00:54:02,000 Speaker 1: when I think about, you know, extreming diet. I'm familiar 917 00:54:02,000 --> 00:54:05,520 Speaker 1: with just about everything you you listed. Both my nephew 918 00:54:05,600 --> 00:54:08,280 Speaker 1: who was on a bond trading desk, and my sister 919 00:54:08,880 --> 00:54:11,520 Speaker 1: are huge advocate of money. Hei, It's in our que 920 00:54:12,000 --> 00:54:14,320 Speaker 1: and we're definitely gonna get to that. Tell us about 921 00:54:14,320 --> 00:54:18,359 Speaker 1: your early mentors who helped shape your career from high 922 00:54:18,400 --> 00:54:23,239 Speaker 1: school to college to professionally. Yeah, whatever I think about mentorship, 923 00:54:23,320 --> 00:54:26,000 Speaker 1: I always have to start very a little earlier than that. 924 00:54:26,080 --> 00:54:28,960 Speaker 1: Like I always have to give you props to my uncle's, 925 00:54:29,320 --> 00:54:31,279 Speaker 1: my older brother. I mean, they were they were the 926 00:54:31,360 --> 00:54:36,800 Speaker 1: folks who the early early extremely raw you know Mandel. 927 00:54:37,320 --> 00:54:39,400 Speaker 1: They played a huge role in that, and and then 928 00:54:39,440 --> 00:54:42,319 Speaker 1: surviving the streets of Chicago. You know, this wouldn't be 929 00:54:42,360 --> 00:54:44,600 Speaker 1: possible if it wasn't for that. But then you start 930 00:54:44,640 --> 00:54:48,040 Speaker 1: to get into a professional context. There was a guy 931 00:54:48,160 --> 00:54:52,640 Speaker 1: named John Whalen who hired me at Morigan Stanley. You know, 932 00:54:52,880 --> 00:54:55,800 Speaker 1: again as high school kid who showed up to interview 933 00:54:55,840 --> 00:54:58,200 Speaker 1: in a gold suit, you know, in a black shirt, 934 00:54:58,719 --> 00:55:02,080 Speaker 1: knew nothing about the BA is this The guy took 935 00:55:02,080 --> 00:55:05,080 Speaker 1: a chance on me, so I'll be be forever grateful 936 00:55:05,480 --> 00:55:07,800 Speaker 1: to him. And then there's a a guy by the 937 00:55:07,880 --> 00:55:11,240 Speaker 1: name of Kevin Morano who I worked for I mentioned 938 00:55:11,239 --> 00:55:13,000 Speaker 1: and fixed in town and he's the guy who gave 939 00:55:13,080 --> 00:55:16,560 Speaker 1: me my first leadership position, and he remains a close 940 00:55:17,040 --> 00:55:21,440 Speaker 1: mentor you know, confidant to this day. And again, I 941 00:55:21,200 --> 00:55:24,560 Speaker 1: I take leadership very seriously, and and he was the 942 00:55:24,640 --> 00:55:28,319 Speaker 1: guy who served as my early example. And then there's 943 00:55:28,320 --> 00:55:31,000 Speaker 1: a host of folks around Morden Stanley today that that 944 00:55:31,040 --> 00:55:35,280 Speaker 1: obviously continue to invest the time and effort and basically 945 00:55:35,320 --> 00:55:38,040 Speaker 1: serving as my sort of personal board of advisors as 946 00:55:38,200 --> 00:55:41,680 Speaker 1: rich to my career. So I've been I've been incredibly fortunate. 947 00:55:41,920 --> 00:55:43,759 Speaker 1: What are some of your favorite books? What are you 948 00:55:43,840 --> 00:55:47,680 Speaker 1: reading currently? Yeah, so I'm a I'm an avid reader, 949 00:55:48,160 --> 00:55:53,080 Speaker 1: fairly diverse mix of books. One over the last couple 950 00:55:53,080 --> 00:55:56,239 Speaker 1: of months that have resonated with me is Can't Hurt 951 00:55:56,280 --> 00:55:59,319 Speaker 1: Me by David Goggins. If you want to, you know, 952 00:55:59,440 --> 00:56:02,120 Speaker 1: sort of make sure you you if you want to 953 00:56:02,160 --> 00:56:05,319 Speaker 1: put yourself where you want to go beyond uh, you're 954 00:56:06,120 --> 00:56:08,680 Speaker 1: what you think you're capable of doing. I would, I 955 00:56:08,680 --> 00:56:13,080 Speaker 1: would strongly implore your listeners to read Can't Hurt Me. 956 00:56:13,440 --> 00:56:15,160 Speaker 1: You know what you do is who you are by 957 00:56:15,200 --> 00:56:19,120 Speaker 1: being Horowitz like a fascinating read that's largely about about 958 00:56:19,160 --> 00:56:22,280 Speaker 1: largely about culture, talking to Strangers from my favorite author, 959 00:56:22,440 --> 00:56:26,960 Speaker 1: Malcolm Gladwell. It's something that I've read fairly recently Becoming 960 00:56:27,080 --> 00:56:30,760 Speaker 1: by Michelle Obama, again a fellow Chicagoan and obviously former 961 00:56:30,840 --> 00:56:33,520 Speaker 1: First Lady. It was a great read. And then most 962 00:56:33,520 --> 00:56:37,200 Speaker 1: recently Right of a Lifetime by Bob Eger. Fascinating story. 963 00:56:37,280 --> 00:56:40,600 Speaker 1: I mean, he's you know, dare I say, like Bob, 964 00:56:40,760 --> 00:56:44,040 Speaker 1: you know, I've been at one firm my entire career, 965 00:56:44,040 --> 00:56:47,040 Speaker 1: and yess, mergers and acquisitions along the way. But when 966 00:56:47,080 --> 00:56:51,000 Speaker 1: you hear Bob's story and how he literally started at 967 00:56:51,000 --> 00:56:53,759 Speaker 1: the bottom of the company and obviously you got to 968 00:56:53,760 --> 00:56:58,320 Speaker 1: the point of being one of Disney's most renowned and 969 00:56:59,719 --> 00:57:03,440 Speaker 1: memor mobile CEOs. And it's just a fascinating story. And 970 00:57:04,200 --> 00:57:08,279 Speaker 1: he goes into again as the mergers in the acquisitions 971 00:57:08,320 --> 00:57:11,120 Speaker 1: took place, you know what the implications was for him personally. 972 00:57:11,440 --> 00:57:15,080 Speaker 1: Just an incredible, incredible person in story. And so so 973 00:57:15,120 --> 00:57:17,240 Speaker 1: those are the book that comes to mind from me there. 974 00:57:17,720 --> 00:57:20,240 Speaker 1: What sort of advice would you give to a recent 975 00:57:20,320 --> 00:57:25,600 Speaker 1: college graduate who was interested in a career in wealth management? 976 00:57:26,120 --> 00:57:28,920 Speaker 1: So first, I would say it's important for young people 977 00:57:28,960 --> 00:57:32,920 Speaker 1: generally to understand that careers are not linear as you 978 00:57:32,960 --> 00:57:36,160 Speaker 1: and I both know, sir, it's their securities journeys and 979 00:57:36,240 --> 00:57:39,080 Speaker 1: my career has definitely been an example of that. So 980 00:57:39,160 --> 00:57:43,120 Speaker 1: that's one. The second thing I sort of put in 981 00:57:43,120 --> 00:57:45,920 Speaker 1: this category of of what I call the Big three 982 00:57:46,600 --> 00:57:51,200 Speaker 1: high degree of self confidence, right, the the ability to 983 00:57:51,360 --> 00:57:55,120 Speaker 1: manage your insecurities. We all have them, right, They prop 984 00:57:55,200 --> 00:57:57,040 Speaker 1: up all the time, and I just think it's it's 985 00:57:57,080 --> 00:58:00,960 Speaker 1: incredibly important to to be able to and your insecurities 986 00:58:01,000 --> 00:58:03,880 Speaker 1: over time. And then lastly, which is probably most important 987 00:58:03,880 --> 00:58:09,080 Speaker 1: for young people, impulse control, the ability to control, you know, 988 00:58:09,240 --> 00:58:12,680 Speaker 1: your impulses and just not make career decisions based on 989 00:58:12,800 --> 00:58:15,160 Speaker 1: emotions or snap decisions or what have you. And that's 990 00:58:15,160 --> 00:58:17,400 Speaker 1: something that you see that's fairly common with young people. 991 00:58:17,640 --> 00:58:20,600 Speaker 1: What do you know about the world of wealth management 992 00:58:20,640 --> 00:58:25,480 Speaker 1: investing today that you wish you knew years ago or 993 00:58:25,520 --> 00:58:27,919 Speaker 1: so when you were first getting started. You know, having 994 00:58:27,960 --> 00:58:33,400 Speaker 1: the vision of is in hindsight is is a wonderful thing, 995 00:58:33,400 --> 00:58:35,880 Speaker 1: and I wish I wish we we had it more 996 00:58:35,920 --> 00:58:39,240 Speaker 1: real time. If there's one thing I would simply say, 997 00:58:39,240 --> 00:58:41,560 Speaker 1: and I'm being cute here, partner, is I would have 998 00:58:41,600 --> 00:58:45,640 Speaker 1: gone long rates thirty years ago and if I had 999 00:58:46,000 --> 00:58:48,360 Speaker 1: if I had, if I had done that idea a 1000 00:58:48,480 --> 00:58:53,240 Speaker 1: fairly wealthy individual. In all seriousness, I think that the 1001 00:58:53,280 --> 00:58:56,600 Speaker 1: one we have come to learn and appreciate its business 1002 00:58:56,400 --> 00:59:00,840 Speaker 1: and history proves this time and time again is you know, 1003 00:59:01,440 --> 00:59:05,440 Speaker 1: having a well thought out plan and sticking to that 1004 00:59:05,600 --> 00:59:08,720 Speaker 1: plan through good markets and bad markets, tends to be 1005 00:59:09,240 --> 00:59:12,000 Speaker 1: the thing that over time tends to win. The day 1006 00:59:12,440 --> 00:59:15,680 Speaker 1: that you're trying to be this active and aggressive investor 1007 00:59:15,760 --> 00:59:17,600 Speaker 1: that's going in and out of markets, trying to time 1008 00:59:17,680 --> 00:59:21,080 Speaker 1: just being has humbled humbled many So I just to 1009 00:59:21,200 --> 00:59:24,240 Speaker 1: simply say, you know, financial planning, which is clearly a 1010 00:59:24,320 --> 00:59:28,520 Speaker 1: thing today, is something that essentially I should have. I 1011 00:59:28,520 --> 00:59:31,560 Speaker 1: wish it had been codified, you know, thirty years ago 1012 00:59:32,200 --> 00:59:36,120 Speaker 1: because it's that powerful. Thank you, Mandel Crawley for being 1013 00:59:36,160 --> 00:59:40,040 Speaker 1: so generous with your time. We have been speaking with 1014 00:59:40,120 --> 00:59:43,800 Speaker 1: Mandel Crawley, head of the Private Wealth Management Group at 1015 00:59:43,840 --> 00:59:47,600 Speaker 1: Morgan Stanley. If you enjoy this conversation, well, be sure 1016 00:59:47,640 --> 00:59:50,440 Speaker 1: and check out any of the previous three hundred and 1017 00:59:50,560 --> 00:59:54,200 Speaker 1: fifties such discussions we've had over the past six years. 1018 00:59:54,720 --> 01:00:01,640 Speaker 1: You can find that wherever your Finder podcasts are sold Apple, iTunes, Stitcher, Spotify, 1019 01:00:01,680 --> 01:00:05,160 Speaker 1: We love your comments, feedback, in suggestions. Write to us 1020 01:00:05,240 --> 01:00:09,760 Speaker 1: at m IB podcast at Bloomberg dot net. Check out 1021 01:00:09,800 --> 01:00:13,439 Speaker 1: my weekly column on Bloomberg dot com slash Opinion. Sign 1022 01:00:13,560 --> 01:00:17,240 Speaker 1: up for our daily reads at Ridholtz dot com. Give 1023 01:00:17,320 --> 01:00:19,680 Speaker 1: us a review at Apple iTunes. Follow me on Twitter 1024 01:00:19,760 --> 01:00:22,600 Speaker 1: at rid Halts. I would be remiss if I did 1025 01:00:22,600 --> 01:00:25,000 Speaker 1: not thank the crack team that helps us put together 1026 01:00:25,120 --> 01:00:30,800 Speaker 1: these conversations each week. Reggie Bazil is our audio engineer. 1027 01:00:31,320 --> 01:00:36,360 Speaker 1: Michael Boyle is my producer slash booker. Michael Batnick is 1028 01:00:36,400 --> 01:00:38,960 Speaker 1: my head of research. A tick of Val Brond is 1029 01:00:38,960 --> 01:00:43,040 Speaker 1: our project manager. I'm Barry Ridholts. You've been listening to 1030 01:00:43,200 --> 01:00:45,800 Speaker 1: Master Some Business on Bloomberg Radio.