BNY Mellon Asset Management reported a record high $1.141 trillion in assets under management as of Sept. 30, up 9% from the previous quarter and 18% higher than the year before.
In an earnings release Tuesday, parent Bank of New York Mellon Corp. said its money management unit’s $94 billion rise in assets from the prior quarter included $61 billion in market-related gains and $29 billion in net inflows.
Long-term investment strategies, predominantly institutional fixed-income and global equity products, accounted for $11 billion of the $29 billion in inflows, compared with $13 billion in the prior quarter and net outflows of $2 billion for the year-earlier quarter. In addition, BNY Mellon Asset Management also enjoyed $18 billion in money market inflows, after averaging almost $20 billion in outflows for each of the prior four quarters.
According to the earnings release, the asset management unit’s strong jump for the year was buoyed by the November 2009 acquisition of London-based Insight Investment Management, with roughly $133 billion in assets.
Revenues from asset and wealth management operations came to $664 million, up 7% from the prior quarter and 12% greater than the year before.
Separately, State Street Global Advisors reported $1.9 trillion in assets under management as of Sept. 30, up 6.8% from the prior quarter and up 9.7% from the year before, according to a news release from parent company State Street Corp.
Investment management fees were $213 million for the third quarter of 2010, down 3% from a year prior.
“The decrease in management fees was attributable primarily to the mix of business reflected in assets under management, offset partially by increases in the average of month-end valuations in worldwide equity markets,” according to the quarterly report. “Average month-end valuations increased about 7% compared to the third quarter of 2009 as measured by the S&P 500 were approximately flat as measured by the MSCI EAFE index.”
Also, Goldman Sachs & Co. reported $823 billion in assets under management as of Sept. 30, up 3% from the prior quarter but down 3% from the year before.
The bulk of those assets are managed by money management unit Goldman Sachs Asset Management, although other assets are managed with the company’s merchant banking and private wealth management units.
Goldman Sachs’ earnings release for the latest quarter said market-related gains of $34 billion more than offset net outflows of $13 billion for the money management unit during the latest three month period. Outflows were down from the $24 billion the prior quarter but were worse than year-earlier outflows of $10 billion.
For the latest quarter, net inflows of $2 billion for Goldman Sachs’ fixed-income strategies were offset by net outflows of $8 billion from equity products, $6 billion from money market strategies and $1 billion from alternative offerings.
By asset class, Goldman Sachs’ reported fixed-income assets of $343 billion as of Sept. 30, up 5% from the prior quarter and 17% higher than the year before. Money market strategies were the next biggest segment at $199 billion, down 3% and 27%, respectively, followed by alternative investments at $148 billion, up 1% and 2%; and equity assets at $133 billion, up 6% from June 30 but down 4% from the year before.
Asset management revenues for the latest quarter came to $1.021 billion, up 5% from both the prior quarter and the year-earlier quarter.