What's going on?

Investment bank Morgan Stanley reported better third-quarter results than expected on Thursday � but its own investors played it cool.

What does this mean?

Morgan Stanley�s revenue and profit both beat analysts� overall forecasts. Its trading operation � helping clients chop and change their portfolios � was responsible for the lion�s share of the outperformance, bringing in almost half a billion dollars more than expected. Investment and �wealth� management � the latter looking after the uber-rich�s riches � generated more revenue than expected too, but wealth fell short in terms of its profit margin. Given that this business line contributes over half �Margin� Stanley�s total profit, that might�ve given otherwise excited investors a reason to act relatively unimpressed: the bank�s share price only ticked up 2%�

Why should I care?

Zooming in: Building up the roster.

Morgan Stanley�s CEO is known to be a dealmaker, and he�s accordingly expanded its investment management operations � first by purchasing Smith Barney in the wake of the financial crisis over a decade ago, and more recently by buying Canadian fintech Solium Capital and online brokerage E-Trade. Between Solium�s management of employee stock plans and E-Trade�s catering to a new wave of amateur capitalists, Morgan Stanley�s building an increasingly rare beast these days: a full-service investment management platform customers appear happy to pay for. Last week�s announcement that it�s adding rival Eaton Vance to the mix should strengthen things further.

The bigger picture: How much?

Morgan Stanley reported that the amount its investment management divisions, er, manage rose last quarter � but it�s still got nothing on the world�s biggest such player, BlackRock. The firm now has almost $8 trillion under management � and it revealed earlier this week that investors were pouring cash into long-term strategies last quarter, particularly �fixed income� funds (i.e. bonds), while yanking cash from passive funds tracking stock indexes.