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Morgan Stanley AUM up 6.4%; revenue jumps

Morgan Stanley Building

Morgan Stanley (MS) Investment Management had $331 billion in assets under management as of Sept. 30, up 6.4% from the previous quarter and up 23.5% from the year before, according to parent company Morgan Stanley's third-quarter earnings announcement Thursday.

Net revenue for MSIM totaled $631 million for the quarter, up 38.4% from the previous quarter and 208% above the previous year. The gains were attributed to “solid results in the traditional asset management business and gains on principal investments in the merchant banking and real estate investing businesses,” according to a news release accompanying the earnings statement.

The firm reported a total of $10.8 billion in net inflows for the quarter. Money market inflows of $15.9 billion offset net outflows of $3.4 billion in fixed income and $1.8 billion in equity, while alternatives saw net inflows of $300 million and real estate had net outflows of $200 million.

The company reported no change in AUM for its merchant banking business.

As of Sept. 30, equities remained the biggest part of AUM, with $117 billion, or 35.3% of total assets, followed by liquidity products with $102 billion, or 30.8%; fixed income, $57 billion, or 17.2%; and alternatives, at $27 billion, or 8.3%. The firm's real estate business totaled $19 billion, or 5.7%, and the merchant banking business totaled $9 billion, or 2.7%.

MSIM's net income totaled $116 million for the quarter, compared to $14 million the previous quarter and a net loss of $31 million the year before.

Parent Morgan Stanley reported net revenue of $5.3 billion, a drop of 23.9% from the previous quarter and a 46% decline from the previous year. It also reported a net loss for the quarter of $1 billion. The drops reflect “the negative impact of $2.3 billion from the tightening of Morgan Stanley's debt-related credit spread.”