AUM at Morgan Stanley up 2.1% in quarter, 18% in 2012

Morgan Stanley Building

Morgan Stanley (MS) Investment Management had $338 billion in assets under management in the fourth quarter, up 2.1% from the prior quarter and 18% above the year before, according to parent company Morgan Stanley’s earnings announcement on Friday.

Net fourth-quarter inflows were $1.2 billion, compared to $10.8 billion in the previous quarter and $14.5 billion in the fourth quarter of 2011.

For the latest quarter, net outflows of $400 million for equity and $2.6 billion in liquidity products were more than offset by net inflows of $3.7 billion in fixed income, $100 million in alternatives and $400 million in real estate.

Equities accounted for the biggest chunk of MSIM’s traditional asset class AUM, at $120 billion, up 3% from the previous quarter; followed by $100 billion in liquidity products, down 2%; fixed income at $62 billion, up 9%; and alternatives, $27 billion, unchanged.

MSIM’s net revenues came to $599 million, down 5% from the prior quarter but up 41.3% from a year earlier. The quarterly gains partly reflected higher results in the traditional money management business, according to the statement. Pretax income from continuing operations totaled $221 million, up from $198 million in the previous quarter and $78 million in last year’s fourth quarter.

Net income for parent Morgan Stanley came to $507 million, compared to losses of $1.023 billion in the previous quarter and $250 million in the fourth quarter 2011.