Morgan Stanley Investment Management on Thursday reported assets under management of $304 billion as of March 31, up 5.9% from the prior quarter and up 10% from the year before.
MSIM's advance for the latest period relied more on market-related gains than inflows. For the quarter, net inflows amounted to $200 million, down sharply from net inflows of $14.5 billion for the prior quarter and $1.4 billion for the year-earlier quarter.
That $200 million in net inflows reflected $700 million in the latest quarter for MSIM's real estate investing business, which accounted for $19 billion of the company's $304 billion as of March 31, offset by net outflows of $500 million for its equity, fixed income, liquidity and alternative fund-of-funds businesses, which account for a combined $276 billion.
Net flows were flat for MSIM's merchant banking business, in areas such as infrastructure, which accounted for $9 billion in AUM as of March 31.
MSIM's revenues for the quarter came to $533 million, up 26% from the prior quarter but down 14% from the year before. Its traditional business, with 91% of the company's AUM, had revenues of $342 million, or 64% of total revenues. MSIM's real estate business, with 6% of assets, had revenues of $146 million, or 27% of overall revenues. Merchant banking, meanwhile, with 3% of AUM, delivered revenues of $45 million, or 9% of the total.
Parent Morgan Stanley's news release on the group's latest earnings results noted that the year-on-year decline in money management revenues was primarily due to lower gains on principal investments in MSIM's merchant banking business.
The parent company on Thursday reported net revenues of $6.94 billion for the latest quarter, up 22% from the prior quarter but down 8.4% from the year before.