Merrill Lynch, Wall Street's biggest money manager, with $478 billion of assets, is charging clients lower prices than No. 2 Morgan Stanley and posting higher returns, as Chief Investment Officer Robert Doll tries to transform mutual funds into the company's fastest-growing business, Bloomberg News reports.

Money management was New York-based Merrill's only major unit to report higher earnings and revenue in the third quarter, in contrast to sales and trading, retail brokerage, and investment banking.

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