After a storied rally for global markets the preceding year, 2018 proved challenging for equities which were confronted with a slew of headwinds exacerbated by growth concerns and the ongoing US-China trade spat. Private banks in Asia were particularly exposed, owing to the risks posed to local markets as well as the unique characteristics of the segment, including a strong home bias and existing holdings from family business owners.

Despite adverse conditions for the asset class, Morgan Stanley was able to leverage its leading research capabilities and comprehensive product platform to deliver effective solutions and strong relative returns for its clients in Asia. In addition to direct equities, the bank registered strong structured product flows into a myriad of pay-off structures including bonus enhanced notes, booster notes, and fixed coupon notes — the most popular pick of the year.

Structuring capabilities and pricing competitiveness aside, Morgan Stanley’s leading research capabilities were especially critical in an increasingly divergent and low beta environment. Despite a very challenging year for Asia and emerging markets as a whole, the bank’s focus list of equities posted strong returns across the board, including high single-digit outperformance for Asia ex-Japan and Greater China, and low double-digit outperformance for global emerging markets. Its late-cycle thematic focus was timely, with strong results for calls on high-quality tech, energy, and financials.

In turn, clients demonstrated trust in the bank’s conviction throughout the year, evidenced by continued growth in the business. At a time when the broader private banking industry experienced a material slowdown in transactional activities, Morgan Stanley Private Wealth Management braced itself against major headwinds and delivered strong, stable growth in its cash equity and derivatives business.

Morgan Stanley is Asian Private Banker’s Best Private Bank – Equity Advisory for 2018.