Morgan Stanley Investment Management had $311 billion in assets under management as of June 30, up 2.3% from the prior quarter and 5.1% above the year before, according to parent company Morgan Stanley's second-quarter earnings announcement Thursday.
For the quarter, money market inflows of $11.5 billion lifted MSIM's overall net inflows for the quarter to $13.1 billion. The money manager had reported net outflows of $500 million for the prior quarter and net inflows of $15.7 billion for the year-earlier quarter, when money market inflows amounted to $16.5 billion.
In other asset categories, MSIM reported net inflows of $1.2 billion for its equity strategies and $800 million for its alternatives strategies, offset by $400 million of outflows for the firm's fixed-income products. The company reported no change in AUM for its real estate investing and merchant banking businesses.
As of June 30, equities accounted for the biggest chunk of MSIM's AUM, at $113 billion, or 36% of the total, followed by liquidity products with $86 billion, or 28%; fixed income, with $58 billion, or 19% and alternatives, with $26 billion, or 8%. The firm's real estate business accounted for another $19 billion, or 6% of the total, with merchant banking-related AUM standing at $9 billion, or 3%.
For the quarter, MSIM's net revenues came to $456 million, down 14% from the prior quarter and off 28% from the year before. In an earnings news release, Morgan Stanley attributed the drop in revenues to losses on the firm's principal investments in MSIM's merchant banking business, and lower gains on principal investments in its real estate investing business.
MSIM's net income, meanwhile, came to $14 million, down 46% from the prior quarter and down 36% from the year before.
The parent company reported net income of $563 million for the quarter, following a loss of $78 million for the prior quarter and net income of $1.2 billion for the year-earlier quarter. Its revenues, meanwhile, came to $6.95 billion for the quarter, little changed from the prior quarter but down 24% from the year before.