The market slide of the second quarter took its toll on money managers assets under management and revenue.
UBS Global Asset Management, Chicago, reported overall assets under management of $2.08 trillion in the second quarter, down 5.5% from the first quarter and 16.8% lower than a year ago.
Institutional client outflows of $40 billion drove the decline, with decreases in fixed income and equity. However, $32 billion in gains were posted in alternatives, real estate and quantitative investments.
Parent UBS reported investors had removed $15.9 billion from its two wealth management businesses in the quarter while UBS Global Asset Management had net outflows of $22.5 billion.
Second-quarter diluted earnings per share for parent UBS were down 17 cents compared to a $5.26 per share loss in the first quarter and a profit of $2.36 per share in the second quarter last year.
UBS also announced it will separate its business divisions into three independent groups: private banking, investment banking and global asset management. The UBS brand name will continue to be used by all divisions, according to a news release.
Barclays Global Investors, San Francisco, reported a pre-tax profit decline of 32% for the year ended June 30, in part because of £196 million in reserves set aside to bolster its liquidity vehicles if needed.
The money manager reported £265 million ($514.9 million) in pre-tax profit on June 30, down from £388 million the year before and down from £346 million on Dec. 31.
Assets under management as of June 30 were $1.97 trillion, down 5.3% from six months earlier and 2% less than a year earlier. BGI reported $147 billion in losses from negative market movement for the six months, more than offsetting the $25 billion in net new assets and $10 billion in positive exchange rate movements.
Profit was impacted by selective support of liquidity products of £196 million, according to an earnings release. The money provided credit protection to certain institutional liquidity products in the event that such protection was needed, said Robin Tozer, spokesman at parent Barclays PLC in London.