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Morgan Stanley Wealth Management picks MDOTM's Sphere to scale model portfolios

For the head of wealth management at a regional bank

MDOTM announced that the Portfolio Solutions team at Morgan Stanley Wealth Management will use its Sphere platform to scale its model portfolio offering, according to a Finovate report dated Nov. 5 and a FinTech Global report dated Nov. 9.12

Sphere will extend the team's centralized investment approach across portfolios that now number in the hundreds, so advisors can choose from many options while the team keeps a single, consistent investment view, according to FinTech Global.1 Each portfolio can still reflect the preferences and constraints it was built around; neither report says why Morgan Stanley chose Sphere, and the sources do not include a Morgan Stanley statement.12

Sphere workflows will help with monitoring portfolios and producing tailored commentary and reports, which FinTech Global says is meant to help the team meet varied client requirements more efficiently.1

Finovate says Sphere has three parts: AI-Driven Investment Insights, Portfolio Studio for building and rebalancing portfolios, and StoryFolio for automating and personalizing portfolio commentary and client reporting.2

Finovate says the platform supports more than $300 billion in assets for more than 60 financial institutions across the US, the UK, and Europe. Neither report discloses contract terms or a rollout timeline.21

MDOTM co-founder and CEO Tommaso Migliore said: "Being selected by Morgan Stanley is a significant validation of what we've built with Sphere."12

Why it matters

Every tailored note Sphere produces is still a client communication, so a large set of portfolios means a large set of documents to review for suitability and accuracy. Banks and wealth units weighing similar AI reporting tools should plan the review and supervision workload alongside the cost of generating the text. The sources do not say how Morgan Stanley will handle that review.

From the brief

Our take. Morgan Stanley will run hundreds of model portfolios from one investment view, with software drafting the client commentary. Matching that menu is the easy part. Every AI-written letter still needs a compliance reader.

Action. Wealth compliance: Add AI-drafted client commentary and reports to suitability and communications review procedures before any model-portfolio pilot.

From our records

Sources

  1. ReportMorgan Stanley taps MDOTM to scale model portfolios FinTech Global
  2. Also reported byMorgan Stanley Wealth Management Selects MDOTM’s Sphere to Scale Model Portfolios Finovate
  3. Also reported byMorgan Stanley places big bet on scale as AI commoditizes advice Financial-planning