Morgan Stanley, the world’s second largest wealth manager by size of assets, said yesterday that its global wealth management arm achieved net revenues of $3.5 billion in the second quarter of 2011, with client assets of $1.7 trillion and 17,638 global representatives.

Net new assets for the quarter were $2.9 billion, with net flows in fee-based accounts of $9.7 billion, it said in a statement. Net revenues and annualised revenue per global representative were the highest since the inception of the Morgan Stanley Smith Barney joint venture, it said.

Client assets in fee-based accounts were $509 billion and represented 30 per cent of total client assets.

The GWM group reported pre-tax income from continuing operations of $322 million, compared with $207 million in the second quarter of last year. The quarter's pre-tax margin was 9 per cent, while income after the non-controlling interest allocation to Citigroup and before taxes was $318 million.

The firm’s asset management business, meanwhile, reported net revenues of $645 million and positive net flows of $15.7 billion for the quarter.

The 17,638 global representatives at quarter-end achieved average annualised revenue per global representative of $785,000, and total client assets per global representative of $97 million.

For the Morgan Stanley business in general, it reported net revenues of $9.3 billion for the second quarter ended 30 June, compared with $8.0 billion a year ago. Results for the current quarter included positive revenue of $244 million compared with positive revenue of $750 million a year ago related to changes in Morgan Stanley's debt-related credit spreads.