MSIM sees AUM rise 8% for quarter, reports $24 billion in quarterly inflows

Morgan Stanley Investment Management reported $482 billion in assets under management as of Dec. 31, up 8% from three months earlier and up 16% from a year earlier, parent company Morgan Stanley's earnings statement Thursday showed.

Net inflows totaled $23.9 billion for the fourth quarter, compared to net inflows of $4.6 billion for the third quarter and net inflows of $8.3 billion for the fourth quarter of 2016.

The inflows were driven by net inflows of $19.2 billion in liquidity strategies, $2.3 billion in fixed income, $1.5 billion in equities and $900 million in alternatives.

The earnings release also reported liquidity strategies had $176 billion in AUM as of Dec. 31, up 13% from Sept. 30 and up 8% from Dec. 31, 2016. Alternatives had $128 billion, up 2% from three months earlier and up 11% from the year earlier.

Equity strategies had $105 billion, up 8% from three months earlier and up 33% from the year prior. Fixed income had $73 billion, up 6% from Sept. 30 and up 22% from 12 months earlier.

In the earnings statement, Morgan Stanley Chairman and CEO James P. Gorman said the company is entering 2018 "with strong momentum aided by rising interest rates, tax reform and an evolving regulatory framework."

Net revenue for MSIM totaled $637 million in the fourth quarter, down 6% from the previous quarter but up 27% from the year-earlier quarter.

Investment management experienced a net loss of $36 million for the quarter, vs. net income of $114 million for the third quarter and net income of $30 million for the fourth quarter of 2016.