Morgan Stanleys asset management business had $577 billion under management for its fiscal first quarter, ended Feb. 29, down 3.4% from the previous quarter but 11% higher than first quarter of 2007. The unit had a pretax loss of $161 million for its first quarter. The asset management business posted gains of $294 million in last quarter and $379 million in the first quarter of 2007, according to a release from Morgan Stanley. Revenues from the asset management business were $543 million, 57% below the previous quarter and 60% below the year-earlier quarter. Much of the quarterly loss in revenue came from the units real estate business. The unit posted losses of $187 million related to securities issues by structured investment vehicles, the release said.