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MONEY MANAGEMENT

BNY Mellon’s AUM rises 5%; net inflows total $14 billion in quarter

Bank of New York Mellon (BK) reported $1.727 trillion in assets under management as of March 31 for its BNY Mellon Investment Management and wealth management businesses, up 5% from both three months earlier and from a year before.

The company said in its earnings statement Thursday that long-term net inflows totaled $14 billion in the first quarter vs. net outflows of $11 billion in the fourth quarter and net inflows of $1 billion in the first quarter of 2016.

The inflows were driven by net inflows of $14 billion in liability-driven investments and $2 billion each in fixed-income and alternative investments. Inflows were partially offset by net outflows of $4 billion from equities. Index investment flows were flat for the quarter.

Broken down by asset class, 34% of AUM was in LDI as of March 31, 19% in index investments, 16% in cash, 11% each in fixed income and alternatives, and 9% in equities.

Short-term net inflows for the quarter totaled $13 billion, vs. net outflows of $3 billion for the previous quarter and net outflows of $9 billion for the first quarter of 2016.

Investment management and performance fees were $842 million for the quarter ended March 31, down 1% from the quarter ended Dec. 31 but up 4% from the year-earlier quarter.

Parent Bank of New York Mellon reported $30.6 trillion in assets under custody and administration as of March 31, up 2% from three months earlier and up 5% from a year earlier.

Parent company revenue totaled $3.84 billion for the first quarter, up 1% from the previous quarter and up 3% from the first quarter of 2016.

Net income for the parent company was $880 million for the quarter, up 7% from the fourth quarter and up 9% from the quarter ended March 31, 2016.