Wednesday, December 14, 2011

Morgan Stanley Faces Fund Troubles

Morgan Stanley has been forced to return about $700 million to investors in its flagship global real-estate fund and to slash fees to persuade them to stick with the firm after a lackluster performance by the fund group, people familiar with the matter told the Wall St Journal.

The moves enabled the Wall Street firm to win a crucial investor vote on the future of its $4.7 billion global-real-estate fund this month. A loss in the vote could have threatened Morgan Stanley's entire private-equity real-estate investment business, which used to generate large profits before the financial crisis but has been dogged by poor…

Read more at http://online.wsj.com/article/SB10001424052970204336104577096793492816570.html?mod=WSJ_Markets_LEFTTopNews

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