Inside Morgan Stanley internships: Here’s everything you need to know

Inside Morgan Stanley internships: Here’s everything you need to know

Banking is a glamorous and glitzy field that attracts millions of job seekers every year. Images of striking it rich in the financial world have a long history. With so much competition going on, it can be impossible to break into large prestigious banks unless you’ve proved your worth during an internship stint.

Of all the financial institutions available, Morgan Stanley stands as one of the oldest and most prestigious. In this article, we take an inside look at Morgan Stanley internships – how much they pay, what an intern’s job scope is like, and more.

But first…

Some history on Morgan Stanley

In the year 1935 federal regulations made it clear that commercial banks and investment banks should be different entities. That is when the grandson of JP Morgan, Henry Sturgis Morgan and Harold Stanley founded Morgan Stanley. Back in the day it was founded as an investment bank. While it has kept its investment banking functions, it has also expanded into various other areas.

The operations of Morgan Stanley can be split into three categories, namely:

  • Wealth management – Morgan Stanley is equipped, trained and targets the handling the asset portfolios of high profile individuals in the sports and entertainment industry. This area alone has consistently brought in $14 billion in revenue. It’s one of the firm’s most profitable segments, contributing about 90% of the firm’s income.
  • Investment banking  –  This is one of the most rigorous and demanding aspects of banking. Investment bankers help companies raise financing, handle almost all aspects of mergers and acquisitions etc.
  • Institutional securities – The institutional securities segment is mainly involved in trading for Morgan Stanley itself. This has been the firm’s biggest segment by revenue – almost $17 billion worth in the last year.

Morgan Stanley’s list of clients is long and impressive. They provide services to individuals, corporations, governments and financial institutions.

What areas can you intern in?

There are several fields or divisions that are open for internship and based on your qualifications and interest you can chose one. The following are some of the divisions:

  • Summer analyst for Wealth Management for undergraduates.
  • Summer analyst for Capital Global Markets for undergraduates.
  • Summer analyst for Investment Banking for undergraduates.
  • Summer associate for Investment Banking for MBA graduates.
  • Summer analyst for Equity Research for both undergraduates and masters.
  • Summer analyst for Institutional Equity and Prime Brokerage for both masters and undergraduates.
  • Veteran’s early insights program for Early Insights for MBA and undergraduates.
  • Summer analyst for Quantitative Finance for masters as well as undergraduates.
  • Summer analyst for Operations for undergraduates.
  • Summer analyst for Technology for undergraduates and masters.
  • Summer analyst for Merchant banking & Real Estate Investing for undergraduates.
  • Summer analyst for Investment Management for undergraduates.
  • Summer analyst for Internal Audit for masters and undergraduates.
  • Summer analyst for Operational Risk for masters and undergraduates.
  • Summer analyst for Market Risk for masters and undergraduates.

How much do they pay interns?

Morgan Stanley has several internship programs that you can be part of. These programs help you to get a taste of what working at the investment banking firm is like. There are several fields that one can choose from when applying for internship (for that, please see the “What areas can you intern in?” section.)

Their most popular internship is the the 10  week summer internship, which is an intense program that undergrads can take on during their summer holidays.

The average salary that an intern can expect while working for the firm varies a lot depending on which field they are part of.

On a per hour basis, you can expect the following average starting salaries:

  • Wealth Management Interns: $10.19 per hour
  • Normal Interns: $12.03
  • Summer Technology Analyst Intern: $30.84 per hour
  • Other Summer Analyst Interns: $28.46 per hour

 

What is an intern’s job scope like, and what will you be exposed to?

The job scope for Morgan Stanley internship varies from program to program. Below, we list just some of your roles and what you can expect to learn in each role.

Wealth Management Summer Analyst – You are expected to understand the entire product suite offered to wealth management clients by the bank. You don’t have to necessarily understand the of the products’ nuances and intricacies. However, you must know the range of products and also the investment management procedure. You’ll also be expected to help financial advisors with their client portfolio analysis. You are also to provide assistance to your team in creating presentations for marketing – this will usually be powerpoint slides etc.

Global Capital markets Summer Analyst – The requirements are no less rigorous than for wealth management. You must have a solid understanding of the market and may have to support your team by carrying out market research and analysis. This division covers markets such as equity and fixed income assets. You will likely have a junior and a senior member to help you in the process of understanding global capital markets and the firm as a whole.

Investment Banking Summer Analyst – You’ll likely be analyzing data on companies’ finances and operations, helping your division with marketing memos, supporting your team for work such as valuing companies etc.

How many interns are able to convert to full time positions?

Morgan Stanley internship is mostly about high intensity work and only the ones who:

  • perform really well
  • build great rapport with their teams

have a high probability of making it into full time employees.

Thankfully, the 10 week Morgan Stanley Internship includes lots of learning and feedback sessions for you to improve and make it through

Currently, there are no numbers cast in stone as to how many interns turn into employees. But make no mistake, it is a rigorous and tough process. In the year 2014 only 1000 interns became employees from a total of 90000 that applied. That’s just a touch over 1%!

Conclusion

Morgan Stanley internship can be a tough nut to crack. But if you are determined and do exceedingly well during the 10 week programs, lots of perks and benefits are waiting for you at the other end. Thus choose your program carefully before you set your foot into the investment banking giant.

Do you work at Morgan Stanley? Or have you applied for an internship? Let us know your experiences in the comments below!