Bank of New York Mellon reported $1.74 trillion in combined assets under management for its BNY Mellon Investment Management and wealth management businesses as of March 31, up 2% from three months earlier and 7% higher than a year prior, the company reported in its earnings statement Wednesday.
The company attributed the increase in assets to higher equity market values, the acquisition of Cutwater Asset Management, which added about $23 billion in AUM, and net new business, partially offset by the unfavorable impact of a stronger U.S. dollar.
Long-term net inflows totaled $16 billion for the first quarter: $8 billion in net inflows to liability-driven investments; $8 billion in net inflows to index funds; $4 billion in net inflows to fixed income; $2 billion in net inflows to alternatives; and $6 billion in net outflows to equities.
Short-term (cash) net inflows totaled $1 billion.
For the previous quarter, long-term net inflows totaled $27 billion and short-term net inflows, $5 billion. In the year-earlier quarter, long-term net inflows totaled $21 billion and short-term net outflows, $7 billion.
Investment management and performance fees during the quarter ended March 31 were $854 million, down 4% from the previous quarter but up 1% from the year-earlier period.
The year-over-year increase reflects higher equity market values, the impact of the Cutwater acquisition and strategic initiatives, partially offset by lower performance fees. The quarterly decrease, meanwhile, reflects seasonally lower performance fees, fewer days in the quarter and the unfavorable impact of a stronger U.S. dollar.
Parent Bank of New York Mellon reported $28.5 trillion in assets under custody and administration as of March 31, unchanged from Dec. 31 and up 2% from March 31, 2014.
Parent company revenue came to $3.85 billion for the first quarter, up 4% from the previous quarter and up 6% from the same period a year ago.
Net income for the parent company, meanwhile, came to $766 million for the latest quarter, compared to $209 billion in net income in the fourth quarter of 2014 and $661 million in the year-earlier quarter.