Morgan Stanley's local management yesterday denied suggestions that it would look to sell its Australian interest in a new global wealth management joint venture between Morgan Stanley and Citigroup.Morgan Stanley has had almost no presence in the Australian retail wealth management market. It has a small private banking operation and last year entered the retail asset management market with the launch of an Australian equity fund.This situation has given rise to speculation that the group will look to dispose of its Australian stake in the new wealth management joint venture. Yesterday the two banks announced that Citi Smith Barney and Morgan Stanley Global Wealth Management would merge to become Morgan Stanley Smith Barney,Morgan Stanley will own 51 per cent of the joint venture and Citi 49 per cent. Citi will be paid US$2.7 billion for trading its 100 per cent of Smith Barney for 49 per cent of the JV.A Morgan Stanley spokesman, Hugh Fraser, said: "Since the most recent build of the Morgan Stanley business in Australia started in 1998 the focus has been on investment banking, corporate advisory and institutional broking."We have wanted to develop the retail side of the business. The joint venture is exciting. We are definitely keeping it."The local Citi Smith Barney operation has 175 planners and advisers and $15 billion of assets under administration. The business reported a net profit of $21.4 million for the year to December 2007 on revenue of $155 million.Its operations include retail stockbroking, advice on managed funds and structured products, tax and financial planning, self-managed superannuation services and lending services.