Morgan Stanley Investment Management reported $404 billion in assets under management as of Sept. 30, flat from June 30 but up 1% from a year earlier, said parent company Morgan Stanley's earnings statement on Monday.
Net inflows totaled $11 billion for the quarter ended Sept. 30, compared to net outflows of $4 billion for the quarter ended June 30 and net inflows of $7.4 billion for the quarter ended Sept. 30, 2014.
By asset class, net inflows of $15.8 billion went into liquidity strategies, while merchant banking and real estate experienced net inflows of $500 million. Fixed income, meanwhile, saw net outflows of $3 billion; equities had net outflows of $1.5 billion; alternatives, outflows of $700 million; and managed futures experienced outflows of $100 million.
The earnings release also reported that liquidity strategies had $148 billion in assets as of Sept. 30, up 12% from June 30 and up 17% from Sept. 30, 2014. Equity strategies reported $125 billion in assets, down 9% from three months earlier and a 13% drop from a year earlier. Fixed income had $61 billion, down 5% from June 30 and down 6% from 12 months earlier. Alternatives had $36 billion in AUM, down 3% from three months prior but up 3% from a year earlier. Merchant banking and real estate investing reached $31 billion in assets, a 3% rise from June 30 and a 7% bump from Sept. 30, 2014. Managed futures had $3 billion in assets, unchanged from the previous three months and 12 months.
Net revenue for MSIM totaled $274 million in the second quarter, down 64% from the previous quarter and down 59% from the year-earlier quarter. The drop in revenue reflects losses in MSIM's merchant banking business, specifically in Asia private equity.
Investment management posted a net loss of $9 million for the third quarter, compared to net income of $159 million for the quarter ended June 30 and net income of $123 million during the third quarter of 2014.