Yahoo Finance Morgan Stanley (MS) Increases Investments in Latin America
As geopolitical tensions increase elsewhere in the world, Morgan Stanley MS looks to expand its investments in Latin America. John Moore, the person heading the Latin America region for MS, said that because of wars in Europe and the Middle East, and increasing tensions in Asia, the importance of Latin America has risen “for reorganizing supply chains and accessing everything from food and industrial metals to transition fuels and pharmaceutical ingredients.”
Given Latin America’s growing economic importance, Morgan Stanley is steadily increasing its investments in Brazil, Mexico and other Latin American countries.
The firm is adding personnel and capital, with significant opportunities seen in merger-and-acquisition advice, capital-markets underwriting, sales and trading, and private credit.
Notably, Brazil presents substantial opportunities in technology-enabled fintech, e-commerce and renewable energy, including second-generation ethanol for aviation. Despite fiscal concerns, foreign interest remains strong in Brazil.
Morgan Stanley’s investment activity in Argentina depends on the implementation of fiscal and tax reforms. If the government takes positive steps like reducing inflation and cutting tax, investments in Argentina would increase.
In addition to the above-mentioned investments, MS plans to continue serving clients across its institutional and wealth businesses in Peru, Colombia and Chile.
However, despite Latin America’s increased economic potential, the region still faces the impacts of volatility. Moore added, “Obviously there are macro rate headwinds and political transitions throughout the region and globally, with Mexico and Brazil underperforming US markets year-to-date.”
Over the past six months, MS shares have gained 5.4% compared with the industry’s 14.3% growth.
Image Source: Zacks Investment Research
Currently, Morgan Stanley carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Expansion Efforts by Other Firms
Given that India’s asset management industry is rapidly growing, Wall Street firms like JPMorgan JPM and The Bank of New York Mellon Corporation BK are considering entry. According to people with knowledge of the matter, JPM and BK already have strategies ready on how they will operate in India.
JPM and BNY Mellon plan to begin operations in India in the next 12-18 months. However, the timelines for approaching SEBI to seek licenses to operate in the country’s asset management industry are not yet known.
Both firms will likely have different styles of entering the India market. While JPMorgan’s execution strategy is not yet clear, BNY Mellon plans to enter India with its own products and distribution channel.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report
