Goldman Sachs sees 2.4% asset increase in quarter

Goldman Sachs reported $856 billion in assets under management for its Goldman Sachs Asset Management and wealth management businesses as of Sept. 30, an increase of 2.4% from the previous quarter and 4.3% from the third quarter of 2011, according to the company's third-quarter earnings report released Tuesday.

The company reported net outflows of $1 billion for the quarter, compared to $16 billion in net inflows in the second quarter, assisted by the addition of $17 billion in fixed income from the company's May 15 acquisition of stable value boutique Dwight Asset Management.

Net inflows for the third quarter of 2011 totaled $6 billion.

Fixed-income inflows for the third quarter totaled $5 billion, down from $12 billion in the second quarter and compared to $5 billion in outflows the previous year. Alternative investments had net outflows of $3 billion for the quarter, compared to net outflows of $1 billion the previous quarter, and equity had net outflows of $1 billion for the quarter, compared to $2 billion in net outflows the previous quarter.

Money market strategies had $2 billion in net outflows in the third quarter compared with $7 billion in net inflows the previous quarter and $11 billion in net inflows the previous year.

Net outflows were offset by $21 billion in market increases. Goldman Sachs reported market declines of $4 billion in the second quarter and $29 billion in the third quarter of 2011.

As of Sept. 30, Goldman Sachs reported $378 billion in fixed-income assets under management, up 4.1% and totaling 44.2% of the company's total AUM. Money market strategies totaled $207 billion, down 1% from the previous quarter and accounting for 24.1% of total AUM. Alternative investments totaled $136 billion, or 15.9% of the total, down 0.7% from the previous quarter; and equity totaled $135 billion, or 15.8% of the total, up 6.3% from the previous quarter.

Investment management revenues totaled $1.2 billion in the third quarter, down 9.8% from the previous quarter and up 2% from the previous year, reflecting lower transaction revenues and slightly lower fees.