Morgan Stanley agreed to sell Van Kampen and its other retail asset management businesses to fund management firm Invesco for $1.5bn (€1bn).

The deal, which had been expected, would add about $119bn in assets to Invesco, bringing the Atlanta company's total assets under management to about $535bn. Morgan Stanley will take a 9.4% stake in Invesco worth about $1bn as part of the transaction and also receive $500m in cash.