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MONEY MANAGEMENT

BNY Mellon assets fall 4% in quarter; firm reports $11 billion in net outflows

Bank of New York Mellon (BK) reported $1.648 trillion in assets under management as of Dec. 31 for its BNY Mellon Investment Management and wealth management businesses, down 4% from three months earlier but up 1% from a year before.

The company said in its earnings statement Thursday that long-term net outflows totaled $11 billion in the fourth quarter, vs. net inflows of $1 billion in the third quarter and net outflows of $11 billion in the fourth quarter of 2015.

The outflows were driven by net outflows of $7 billion from liability-driven investments, $4 billion from equities and $1 billion each from fixed-income and index investments. Outflows were partially offset by net inflows of $2 billion in alternative investments.

Broken down by asset class, about $560 billion was in LDI as of Dec. 31, $313 billion in index investments, $264 billion in cash, $231 billion in equities, $214 billion in fixed income and $66 billion in alternatives.

Short-term net outflows for the quarter totaled $3 billion, vs. net outflows of $1 billion for the previous quarter and net inflows of $2 billion for the fourth quarter of 2015.

Investment management and performance fees were $848 million for the quarter ended Dec. 31, down 1% from the quarter ended Sept. 30 and down 2% for the year-earlier quarter.

Parent Bank of New York Mellon reported $29.9 trillion in assets under custody and administration as of Dec. 31, down 2% from three months earlier but up 3% from a year earlier.

Parent company revenue totaled $3.79 billion for the fourth quarter, down 4% from the previous quarter but up 2% from the fourth quarter of 2015.

Net income for the parent company was $822 million for the quarter, vs. net income of $974 million for the third quarter and net income of $637 million for the quarter ended Dec. 31, 2015.