There has been a mass exodus of portfolio mangers from Morgan Stanley Investment Management and its sister company, Van Kampen. Morningstar reports that the following portfolio mangers have departed to seek other opportunities: Sandip Bhagat of Morgan Stanley Diversified International Equity, Van Kampen Enterprise and Van Kampen Equity Premium Income; Kathy O'Connor and Jeff Sanders of Van Kampen Disciplined Small Cap Value; James Solloway and Edward Ripple of Morgan Stanley Dividend Growth Securities; Joseph Piraro of Van Kampen Insured Tax-Free Income, Van Kampen CA Insured Tax-Free, Van Kampen Trust for Insured Municipals and Van Kampen CA Value; and Henry Choi of Morgan Stanley High Yield Securities, Morgan Stanley High Yield, Van Kampen High Yield, Van Kampen High Income II and Morgan Stanley Flexible Income. Also departing is Ira Ross of Morgan Stanley Dividend Growth Securities, who retired.

An source familiar with Morgan Stanley told the MFWire that the departures are mostly for performance reasons and are not part of a competitor lift-out or anything more strategic.

The executive ranks of of Morgan Stanley's investment management business have also been in flux lately, thanks to some high profile resignations.

In early May, Michael Spangler, the head of Morgan Stanley Investment Management's U.S. retail product group, announced he had taken a position at another company. In early March Michael Kiley, then head of Van Kampen, left the company to pursue other opportunities. He was replaced by Jerry Miller.

This year, Morgan Stanley has also been putting more emphasis on its alternative investment products, such as hedge funds, which can charge higher fees. Details of the revised business plan can be found in this powerpoint presentation.

If you know any details we missed send us an e-mail at tips@investmentwires.com.  

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