Morgan Stanley Investment Management reported $403 billion in assets under management as of Dec. 31, flat from Sept. 30 and up 7% from a year earlier, parent company Morgan Stanley’s earnings statement Tuesday showed.
The annual increase in AUM was attributed primarily to market appreciation and positive flows.
Net inflows totaled $3.5 billion for the quarter ended Dec. 31, compared to net inflows of $7.4 billion for the quarter ended Sept. 30 and net inflows of $3.9 billion in the fourth quarter of 2013. For the year ended Dec. 31, MSIM had total net inflows of $24 billion.
By asset class, net inflows of $3.3 billion went into liquidity strategies, $1.7 billion into merchant banking, $1.4 billion into fixed income and $600 million into alternatives during the fourth quarter of 2014. Equities, meanwhile, saw net outflows of $2.9 billion, while real estate and managed futures experienced net outflows of $400 million and $200 million, respectively.
The earnings release also reported that $141 billion of AUM was in equities at the end of the fourth quarter, down 1% from the end of the third quarter. Liquidity strategies had $128 billion in assets, up 2%; fixed income, $65 billion, unchanged from the prior quarter; alternatives, $36 billion, up 3%; real estate, $20 billion, also unchanged; merchant banking, $10 billion, up 11%; and managed futures, $3 billion, also unchanged.
Net revenue for MSIM totaled $588 million in the fourth quarter, down 12% from the previous quarter and down 31% from the year-earlier quarter.
Investment management posted a net loss of $15 million in income for the quarter ended Dec. 31, compared to net income of $120 million in the previous quarter and $180 million during the fourth quarter of 2013.